2026.04.0115:16:33UTC+00Mexico's Manufacturing Contraction Slows in March

Mexico’s S&P Global Manufacturing PMI climbed to 48.9 in March from 47.1 in February, indicating the mildest contraction in five months. New orders declined for a fifth consecutive month, though only at a moderate pace—the softest drop in this period—as firms pointed to weak demand, inflation, US tariffs, and the war in the Middle East. Export orders also fell, but at their slowest rate in five months, amid reduced demand from Japan and the US. Output contracted at the weakest pace since October.

Input costs increased at the fastest rate in six months, reflecting the impact of tariffs, adverse exchange rate movements, and heightened geopolitical tensions in the Middle East. Firms reported higher spending on chemicals, energy, metals, and fuel. However, despite mounting cost pressures, selling prices rose only marginally.

Employment declined as companies placed staff on technical breaks and opted not to renew temporary contracts. Supply chain disruptions remained in place, with material deliveries delayed by one to three weeks due to highway blockades and geopolitical tensions.