The Nuevo León Transformation Industry (Caintra) industry reported that investment in equipment, machinery and construction fell to levels not seen from the Covid-19 pandemic, when the economy was paralyzed and entered into recession.
“The number of companies that made some investment in machinery, equipment or construction was considerably reduced to 16 percent, minimum since June 2020,” according to the June manufacturing expectations survey, which is lifted by Caintra between the industry with operation in the Metropolitan Zone of Monterrey.
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Tariffs for Mexico have been attenuated, but there are still many doubts about their implementation, causing many companies to moderate or reduce investment.
In 2024 the intention to inject capital was 26 percent of entrepreneurs, while in 2023 more than 45 percent of industrialists capitalized their business in Nuevo León.
As of September 2024, Regiomontanas companies began to reduce their investments in machinery, equipment and construction: in that month more than 36 percent of the industries had a budget to allocate it to purchases and investments in their factories.
Almost half of the regiomontanos industrialists made investments in machinery and equipment in November 2023, being the largest month in which such flow flow was recorded to the entity.
In 2020 it was the last time those low levels of investment were seen by Nuevo León’s industry.
In June most of the survey indicators showed a setback compared to the previous month.
The indicators that presented the highest reductions were: new orders, which fell to 40.69 points, the physical volume of production fell to 41,83 points and the capacity used decreased to 44.35 points.
The first two indicators are at their lowest level since July 2020, according to Caintra.
He added that the Foreign Trade Indicators, as well as the number of workers were the only ones who presented advances, although staying in the contraction zone. Specifically, export and import indicators advanced at 2.33 and 1.58 points, 43.62 and 44.82, respectively.
The workers’ index advanced modestly at 0.41 points to 47.23 units.
The price index of its products leads to a downward trend since the beginning of the year, to such an extent that in June they are in contraction with 49.75 points. The raw material price index is also down, but still far from the expansion threshold.
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In the case of factors that hinder the performance of companies, the political landscape remains as the main obstacle for seven consecutive months, although reducing its proportion of 50 percent to 36.4 percent, drawing with a weak economic activity.
They are followed by the adverse international environment and lower external demand, when selected by more than 33 percent of respondents.
