Mexico Investment Rises 6.6% in July on Machine Imports

Mexico's gross fixed investment increased by 6.6% in July compared to the previous year, according to the national statistics office INEGI, which reported on Monday, 5 October. Both construction and machinery sectors experienced growth, with imported capital goods driving the rise. The data provides insight into the country's nearshoring efforts and demand for foreign equipment.

INEGI tracks imported machinery separately, indicating a demand for foreign equipment. After adjusting for seasonal and calendar effects, investment growth slowed to 1.4% from June and 6.0% from July 2025. Machinery and equipment were the primary contributors to the monthly increase, rising 4.5% from June. However, construction spending declined by 1.5% over the same period, with non-residential building down 3.9%.

Over a twelve-month period, the construction sector showed stronger growth, with adjusted residential building up 9.2% and non-residential building up 4.0%. Importantly, imported machinery and equipment saw a significant rise of 9.9% year-on-year, while Mexican-made machinery fell by 3.1%. The largest increase was in raw terms, with imported machinery, equipment, and other goods jumping 14.9%.

Private and public investment both increased, with private investment rising 6.7% and public investment growing 6.2% from July 2025 compared to the same period in 2025. The rise in July came from a low base, with gross fixed investment only up 1.7% from January to July 2025, unadjusted. Private investment grew just 0.4% during that period, while public investment rose 10.2%, primarily driven by construction, where public spending increased 12.9%.

The government has led the recovery, while private companies have been slower to commit. The release underscores a pattern of record foreign investment announcements alongside slow growth in Mexico. Private forecasters have also raised their outlook, with GDP growth now projected at 1.4%. The data highlights steady orders from Mexican plants for US exporters of industrial equipment.

For investors in Mexican stocks and US companies with Mexican factories, higher capital spending supports the nearshoring story. The construction numbers also indicate continued building of homes, supporting jobs despite potential issues with rents and prices. The figures are preliminary, and monthly data may be revised as more surveys arrive. The next release for August is due on 5 November 2026.