Mexico’s S&P Global Manufacturing PMI fell to 49.5 in October 2025 from 49.6 in September, indicating a slight deterioration in operating conditions. The PMI has remained below 50 in 15 of the past 16 months. New orders rose for the third month, though at the slowest pace, while new export orders fell for the twentieth consecutive month, with weaker demand from Europe and the US partly offset by Asia and South America. Factory output contracted for the sixteenth month, but at a slower pace. Firms reduced input purchases and trimmed staff via technical breaks and non-renewal of temporary contracts, with job losses the largest since June. Finished goods inventories rose, while input stocks fell. Input costs increased further amid higher material and transport expenses, US tariffs, and adverse exchange rates. Output prices rose at a slower pace than input costs. Business confidence remained positive but weakened.