Mexico’s construction sector registers biggest recovery since 2020

Mexico’s construction sector posted its biggest recovery since its downturn started in early 2020 due to the pandemic.

Latest results of statistics office Inegi’s production survey among construction companies showed month-on-month growth of 2.5% in November 2022, following a 0.1% increase in October and a decrease of 0.2% in September. The Inegi figures are seasonally adjusted and in real terms. 

The sector has seen large swings throughout last year, but the November figure was the strongest in over two years, even though its production value of around 24bn pesos (US$1.28bn) was still lower than the 26bn pesos registered in March 2020, when the decline started.

The year-on-year expansion in November was 4.7.%.

Buildings represented 38.9% of the month’s total output, followed by transport and urbanization works (20.9%), oil and petrochemical plants (20%), other non-specific construction (13.5%), water, irrigation and sanitation (4.1%) and electricity and telecoms (2.6%).

The private sector accounted for 56% of output, including 67.2% in the buildings category, which includes hospitals, schools, offices and housing.