Industrial activity in Mexico experienced a downturn of 1.3 percent in 2025, marking a continuation of two consecutive years of decline. This downturn affected all four major sectors of the economy—mining, construction, manufacturing, and energy generation—indicating a broad-based weakness in industrial performance. Analysts are cautiously optimistic about a potential slight recovery in the following year, although significant challenges remain on the horizon.

The most significant contraction was observed in the mining sector, which saw a drop of 6.5 percent. Following closely were the construction and manufacturing sectors, which faced declines of 1.0 percent and 0.5 percent, respectively. Notably, the manufacturing sector reported a sharp decline in automobile and truck production, plummeting by 9.1 percent, contrasting with a growth of 7.2 percent in computer and peripheral equipment manufacturing, which suggests varying performances within the manufacturing landscape.

Economic uncertainty continues to loom over Mexico's industrial sector, exacerbated by protectionist policies from the United States, including tariffs threatening trade with its neighbor. Additionally, ongoing threats related to organized crime have added to the cautious atmosphere in the industrial environment. These factors are critical in understanding the challenges facing Mexican industries as they navigate through these turbulent times, with implications for employment, investment, and overall economic growth in the future.