In September 2024 and with seasonally adjusted figures, gross fixed capital formation (gross fixed investment) in Mexico decreased 0.8%, compared to August, adding two months of declines at a monthly rate, according to information published by the National Institute of Statistics and Geography (Inegi).
Gross fixed capital formation allows us to know the behavior of investment in fixed assets in the short term. Investment is a necessary condition for economic growth to exist.
The monthly drop in gross fixed investment was due to the fact that expenses on machinery and equipment (of domestic and imported origin) fell 1.1% and in construction, 0.4% at a monthly rate, last September with seasonally adjusted data.
Compared to September 2023 and with seasonally adjusted figures, gross fixed capital formation decreased 2.3% in real terms. It is the first drop at an annual rate that has occurred since February 2021.
Internally, construction expenses decreased 5.2%, the largest drop since March 2021, but in machinery and equipment they grew 0.8%, in September 2024, compared to the same month last year.
It stands out that within construction equipment expenses, there has been a poor performance in non-residential construction, with an annual contraction of 12.70%, the highest since October 2020.
In addition, investment in machinery and equipment other than transportation had a contraction of 4.44%.
However, gross fixed investment registers accumulated growth in the first nine months of the year of 5.52%.
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