Domestic demand, without clear signs of improvement

The key indicators of domestic demand (private consumption and fixed investment) showed a limited improvement, rather than a sustained recovery at the end of October 2025, revealed data from the National Institute of Statistics and Geography (Inegi).

Private consumption, the broadest way to measure people’s spending, regained dynamism by rising 0.8 percent in October and posted five positive monthly readings, driven mainly by imported goods, although domestic spending remained practically stagnant, suggesting that the strength of domestic consumption remains moderate.

Compared to October 2024, consumption accelerated its growth to 4.1 percent, the seventh consecutive advance in its annual measurement.

The Inegi specified that the performance of consumption was driven by imported goods and services, with a rebound of 6.6 percent compared to last September and 20.6 percent compared to October 2024.

The national component of consumption grew in October and in the last 12 months it advanced 1.2 percent, as a result of a monthly decrease of 0.2 percent in the consumption of national goods last October and an advance of 0.4 percent in services. In the annual measurement they advanced 0.3 and 2.3 percent, respectively.

Private consumption was driven by imported goods and the services sector, “while investment remains weak and cautious, which indicates that growth will depend on business confidence, domestic demand and the execution of investment projects,” predicted the economic studies area of ​​Valmex Casa de Bolsa.

In parallel, gross fixed investment registered a monthly rebound of 0.9 percent, due to residential construction, while that of machinery and equipment weakened again, stringing together 11 consecutive months with negative annual variations.

The monthly indicator of gross fixed investment, which represents the value of durable goods acquired for production, stood at 102.2 points in October 2025, an annual contraction of 5.8 percent, and linked 14 months of consecutive falls in the annual measurement.