Mexico's industrial production growth decelerated to just 0.2% in July compared to the previous month, according to a report from the national statistics agency Inegi. This marks a slowdown from a 0.4% increase in June and a 0.7% gain in May, although it represents the fifth month of expansion in the seven months leading up to July. The construction sector led the growth, expanding by 2.6% over June, while mining increased by 1.4%.

However, oil and gas extraction declined by 0.2%, continuing a trend of contraction in 10 of the last 12 months. The extraction of other minerals rose by 0.4%, and mining-related services saw a significant rebound, up 14.8% in July. Manufacturing, on the other hand, contracted by 0.8%, largely due to a 3.1% decline in the auto manufacturing sector. Looking ahead, Mexican bank Banorte forecasts a negative bias for industry in the coming months, citing challenges such as weakness in the U.S. industry and lower base metal prices, although it remains optimistic about medium-term growth driven by major infrastructure projects.