Breaking News: Mexican Construction Hits $3.23 Billion in July

25 September, 2023 by

In July, the Mexican construction industry achieved a remarkable milestone, reaching a new record with a total value of $3.23 billion, or MXN 56.82 billion at the current exchange rate. This achievement marks the third consecutive month of historical highs, as reported by SteelOrbis, based on data from the national statistics agency Inegi.

This substantial increase of 35.1 percent, when compared to July of the previous year, represents the twenty-ninth consecutive annual rise since March 2021. This impressive growth stands in stark contrast to the consumption trends of rod, wire rod, and wire. During the May-July period, construction works' value surged by 23.1 percent in real terms, excluding the effects of inflation, compared to the same period last year. In contrast, the consumption of rebar increased by 3.5 percent, while wire rod and wire consumption saw declines of 8.8 percent and 19.3 percent, respectively, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero).

Among Mexico's 32 states, 23 experienced growth in the value of construction works, with Quintana Roo leading the way with an astounding 927 percent real increase, closely followed by Campeche with a 390 percent rise. These 20 states collectively contributed 76.7 percent of the total construction value in July.

On the other hand, nine states witnessed a decrease in construction value, with Tabasco experiencing the most significant reduction at 46.3 percent, while Mexico City and Morelos recorded drops of over 30 percent. Jalisco, Guanajuato, and Sinaloa also faced declines of around 20 percent. These nine entities accounted for 23.3 percent of the total construction value for July.

The cumulative value for construction in the January-July period reached MXN 353 billion, equivalent to $20.02 billion at the current exchange rate. In this cumulative data, the five leading construction economies in the country were Nuevo León (7.9 percent of the total), Quintana Roo (7.8 percent), Jalisco (7.5 percent), Campeche (6.4 percent), and Tabasco (5.9 percent). Together, they contributed 35.5 percent of the total value.

It's worth noting that the construction industry plays a significant role in Mexico's economy, contributing 6.0 percent to the nation's total GDP, which amounts to $1.59 trillion. SteelOrbis recently published a report from Canacero, revealing that 54.5 percent of steel consumption in Mexico is attributed to activities related to both private and public construction, encompassing civil engineering projects, residential and non-residential building, and the use of various steel products such as wire, rod, commercial profiles, beams, nails, wire rod, sheet, plate, structural profiles, and tubes.

Read More: Argentina's steel production increases in August

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