In December, Mexico's manufacturing sector experienced a slight contraction, with a reported 0.1% decrease in production volume from the previous month. This decline coincided with a drop in hours worked, which also decreased by 0.1%. The data comes from the National Institute of Geography and Statistics (INEGI), highlighting a mixed performance in the manufacturing industry despite the drop in output. Comparatively, year-over-year figures show a 2.9% increase in manufacturing production compared to the same month last year, suggesting some resilience in the sector despite the monthly volatility.

The report indicates that the hours worked by employed individuals saw a specific decline, where hours worked within the corporate structures dropped by 0.2%. This decline in working hours raises concerns about the overall employment situation in the manufacturing sector, especially as companies may adjust workforce needs in response to fluctuating production levels. It emphasizes the ongoing challenges faced by the industry as it navigates economic pressures while balancing labor costs and output demands.

On a positive note, real average wages rose by 1% during the same month, indicating that despite fewer hours worked, workers are earning slightly more on average. This increase in wages provides a glimmer of hope for consumer purchasing power in the economy, potentially offsetting some adverse effects from the reduction in working hours. However, the simultaneous decrease in manufacturing output calls for close monitoring of future trends in employment and wage growth within Mexico’s manufacturing landscape, as continued declines could signal deeper issues in the economic framework.