Mexico's industrial production fell 0.7% year-on-year in May 2026, reversing a 2.3% increase in April, lower than market expectations of a 0.1% drop as weakness was broad-based across sectors. The downturn was led by a contraction in manufacturing activity by 1.5% after a flat reading in the previous month, reflecting weaker output across industries, particularly in the manufacturing of computers and communication related equipment (-7.5%). Utilities production declined further by 0.9% after a 0.4% drop, while construction activity fell 0.3%, reversing a 10.4% gain despite a surge in civil engineering works (15.9%). Meanwhile, mining and quarrying output growth accelerated to 3.9% from 3.4%, supported by stronger growth in mining related services (51.3% vs 23.7%). On a seasonally adjusted monthly basis, industrial activity fell by 0.8% in May, reversing a 2.1% increase in the previous month.