Construction value in Mexico up 30.1 percent in January

26 March, 2024 by

The value of work in the construction industry, the largest consumer of steel in Mexico, registered a nominal increase (without adjustment for inflation) of 30.1 percent, year-over-year, in January, according to SteelOrbis' analysis of data from the national statistics agency Inegi. 

In real terms (seasonally adjusted data), the annual increase was 26.5 percent. In Mexican currency and considering today's peso-dollar exchange rate, the value of work in the construction industry is equivalent to $3.41 billion. 

Of the 32 states in the country, in January the value of works grew in 25, of which Quintana Roo stood out with an increase of more than 450 percent. In Durango and Campeche it grew more than 100 percent. In Guerrero, where Hurricane Otis damaged the city of Acapulco, the value of the works increased only 90.4 percent and a share of the total was 0.6 percent with $21.6 million. 

The 25 entities with growth contribute 81.3 percent of the total. In contrast, in the eight entities where the value of construction works decreased, they contributed the remaining 18.7 percent. 

Mexico City (the largest economy in Mexico by its contribution to GDP) and Nayarit stood out with drops of around 40 percent. 

In January, the five largest construction economies in the Mexican market were Baja California (5.3 percent), Jalisco (5.5 percent), Campeche (7.6 percent), Nuevo León (9.7 percent) and Quintana Roo (14.0 percent). Together, they contribute 42.3 percent. 

According to the National Chamber of the Iron and Steel Industry (Canacero), the construction industry is the largest consumer of steel in the country. 

In January, rebar consumption decreased 3.3 percent, year-over-year, and wire consumption decreased 2.1 percent. In contrast, wire rod consumption increased 6.2 percent, according to data from Canacero. 

In 2023, the construction industry contributed 6.1 percent of Mexico's total GDP ($1.49 trillion), according to data from Mexico's System of National Accounts, reviewed by SteelOrbis.

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