La Jornada: Investment and consumption recovered in March: Inegi

In March, investment and consumption, fundamental components of the Mexican economy, showed signs of recovery by registering monthly advances driven by greater acquisition of machinery and equipment, as well as household spending on goods and services, according to information from the National Institute of Statistics and Geography (Inegi).

Gross fixed investment registered a growth of 0.4 percent in March compared to the previous month due to greater purchases of machinery and equipment, as well as the progress of non-residential projects, according to the Monthly Indicator of Gross Fixed Capital Formation, which allows knowing the behavior of investment in fixed assets in the short term.

At the end of March, this indicator stood at 102 points and had its best advance so far this year.

Internally, investment in construction maintained a differentiated behavior. While residential construction fell 5.4 percent compared to February, non-residential construction advanced 0.4 percent.

Thus, overall, investment in this area showed a monthly decrease of 2.4 percent.

On the contrary, investment in machinery and equipment was the main driver for the growth of gross fixed capital formation during March.

This component registered an advance of 3.1 percent compared to the previous month. Within goods of national origin, investment increased 1.8 percent, supported by a 3.7 percent growth in machinery, equipment and other goods, as well as a 0.4 percent increase in transportation equipment.

The acquisition of imported machinery and equipment also showed positive performance, growing 3.3 percent compared to February.

The purchase of transportation equipment from abroad stood out, which rose 13.1 percent, while investment in machinery, equipment and other imported goods advanced 2.9 percent.

Best trailer

Meanwhile, the Monthly Private Consumption Indicator stood at 113.6 points, which meant an advance of 1.2 percent compared to February.

It was also the best progress since April 2025 and is the most favorable result so far this year. In January, the indicator fell 1.5 percent, and in February, the drop was 0.2 percent.

Consumption is one of the main drivers of the economy, representing around two thirds of the gross domestic product (GDP). Their performance usually reflects the level of household confidence, the evolution of employment, salaries or access to credit.

In detail, consumption had a greater boost from the purchase of imported goods, advancing 1.6 percent.

Meanwhile, the purchase of national goods and services grew 0.9 percent. According to Inegi, spending on goods increased 1.4 percent, while spending on services increased 0.4 percent.

Mixed performance

In the annual comparison, the performance was uneven: while private consumption advanced 3.1 percent compared to March 2025, gross fixed investment contracted 3.1 percent.

Coppel’s economic studies area noted that the rebound in consumption was greater than expected and coincided with an upward revision of economic growth during the first quarter. “Household consumption continues to be the main support for productive progress.”

Regarding investment, he highlighted that the recovery observed in March started from low levels and that non-residential construction accumulates two consecutive months of monthly and annual advances. However, he considered that the balance of the first quarter remains unfavorable and anticipated a gradual recovery in the coming months.