MEXICO · ECONOMY
Key Facts
- —What is happening Mexico’s factory output rose 1.7% in August from July and 4.1% from August 2025, seasonally adjusted, while factory employment fell, data published on Friday, 16 October show.
- —Why it matters Mexican plants supply US buyers with cars, electronics and machinery, so a strong month signals steady cross-border supply, but output grew while the number of factory jobs shrank.
- —The numbers Seasonally adjusted, employment fell 0.1% on the month and 1.0% on the year, hours worked fell 0.6% on the year, and real average pay rose 2.7% on the year.
- —Who is who INEGI is Mexico’s national statistics office, and its monthly manufacturing survey covers 8,613 plants in 206 activity classes, so it is the standard gauge of Mexican factory activity.
- —What to watch The next manufacturing survey is due on Tuesday, 17 November, and will show whether the August jump holds or fades in September.
- —Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
- —What it means for you US firms that buy Mexican parts and finished goods get a sign of steady supply, while investors in Mexican assets see strong output but weaker hiring.
Mexico’s factory output rose 1.7% in August from July, and 4.1% from a year earlier. Factory employment fell on the year, so output grew with fewer workers.
Mexico factory output rose 1.7% in August from July and 4.1% from August 2025, on seasonally adjusted figures. INEGI, the national statistics office, published the data on Friday, 16 October.
It matters in the United States because Mexican plants build cars, electronics and machinery for North American buyers. The jump came as factory employment fell 1.0% on the year, so output grew with fewer workers.
What the Manufacturing Survey Showed for August
INEGI’s monthly survey measures the physical volume of production in 206 activity classes. In August the adjusted volume rose 1.7% on the month and 4.1% on the year, after July’s first estimate of 0.9%.
Without seasonal adjustment, output rose 4.0% from August 2025, and the production index stood at 113.7 against a 2018 base of 100. La Jornada, UnoTV and Edomex Al Día also reported the figures on Friday, citing INEGI.
INEGI’s broader industrial activity indicator, published on Monday, 12 October, showed manufacturing up 1.2% on the month and 3.2% on the year. The Rio Times report on August industrial output covers that release, which uses a different method.
Electronics and Fuels Lead, Furniture and Clothing Lag
Among the 21 manufacturing subsectors, 10 produced more than a year earlier and 11 produced less, on unadjusted figures. Petroleum and coal products jumped 23.5%, the largest gain, and computers, communication equipment and electronic components rose 5.8%.
Machinery and equipment gained 4.0%, basic metals 3.8% and transport equipment, which includes vehicles and parts, 1.7%. INEGI does not explain the causes of these moves in the bulletin.
Furniture and mattresses fell 8.5%, clothing 3.9% and the “other manufacturing” group 3.8%. Food processing fell 1.4%, and plastics and rubber fell 1.7%.
Factory Output Grows While Jobs and Hours Slip
Seasonally adjusted, total manufacturing employment fell 0.1% in August and was 1.0% lower than a year earlier. Hours worked were unchanged on the month and 0.6% lower on the year.
Real average pay, adjusted for inflation, fell 0.2% on the month but was 2.7% higher than a year earlier. Pay for production workers rose 3.4% on the year, and pay for administrative staff rose 1.3%.
On unadjusted figures, jobs grew in electronics, where employment rose 3.7%, and in machinery, up 3.1%. They fell in furniture by 5.6%, in paper by 2.8%, in plastics by 2.7% and in transport equipment by 1.9%.
The Actors Behind the Numbers
INEGI, the Instituto Nacional de Estadística y Geografía, is an autonomous agency that produces Mexico’s official statistics. Its manufacturing survey sampled 8,613 plants, and the August figures are preliminary.
INEGI notes that data are final up to December 2025 and revised from January to July 2026. Its employment count differs from the social security registry of the IMSS, Mexico’s state social security institute.
What It Means for US Readers
US companies that buy Mexican parts and goods get a sign of steady supply, as electronics and machinery output rose. For background on why factories sit in Mexico, see the Mexico nearshoring explainer.
Investors in Mexican assets see strong output but weaker hiring, a mix INEGI does not explain. Readers who plan to live or work in the capital can use the Mexico City expat guide and the Mexico overview.
What Is Not Known
INEGI does not say why output grew while employment fell, or why petroleum and coal products jumped 23.5%. The survey does not split output by destination, so the share sold to US buyers is unknown.
The August figures are preliminary and may be revised next month. This report rests on the INEGI bulletin, which La Jornada, UnoTV and Edomex Al Día also summarised.
More: Mexico news in English, every day from The Rio Times.
Frequently Asked Questions
How much did Mexico’s factory output rise in August?
Seasonally adjusted, the volume of manufacturing output rose 1.7% from July and 4.1% from August 2025. Without seasonal adjustment, the annual gain was 4.0%.
Did Mexican factory jobs grow in August?
No, seasonally adjusted manufacturing employment fell 0.1% on the month and 1.0% on the year. Hours worked were flat on the month and down 0.6% on the year.
Which Mexican industries grew most in August?
On unadjusted figures, petroleum and coal products rose 23.5% and computers and electronics rose 5.8%. Machinery gained 4.0% and transport equipment 1.7%.
Which industries shrank?
Furniture fell 8.5%, clothing 3.9% and the other manufacturing group 3.8%. In all, 11 of 21 subsectors produced less than a year earlier.
When is the next INEGI manufacturing survey?
INEGI plans to publish the September results on Tuesday, 17 November 2026. That release will show whether the August jump lasts.
Sources: INEGI, Encuesta Mensual de la Industria Manufacturera, bulletin 627/26, 16 October; INEGI, Indicador Mensual de la Actividad Industrial, bulletin 623/26, 12 October; INEGI, EMIM bulletin 594/26, 17 September; La Jornada, 16 October UnoTV, 16 October; Edomex Al Día, 16 October (all accessed 16 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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