Gross Fixed Investment advanced 0.1% in January, reports Inegi

Mexico City. Investment in total facilities, machinery and equipment in Mexico, of national and imported origin, grew 0.1 percent in real terms in January, compared to December, driven by residential construction and imported transportation equipment, figures from the National Institute revealed. of Statistics and Geography (Inegi).

After having registered a monthly contraction of 1.8 percent in November of last year and presenting no monthly variation in December with seasonally adjusted figures, gross fixed investment, made up of goods used in the productive process of Mexico, showed moderate progress, since the A drop in non-residential construction spending (mainly public works) and in national transportation equipment reduced its strength at the start of 2024.

According to Inegi, the Monthly Indicator of Gross Fixed Investment (GFCF) for January 2024 was located at 115.4 points, which is why it has remained stagnant at that level during the last three readings, to only report a monthly advance of 0.1 percent and report a slowdown in its annual variation to 13.8 percent in January.

The data for the first month of the year was supported by construction, which grew 0.3 percent monthly, with residential construction being the one that rebounded the most with a growth of 6.8 percent, after two months of contractions; while the strength of the exchange rate contributed to economic agents having greater investment spending on imported transportation equipment, with an increase of 16.5 percent in January compared to December.

In its annual comparison, construction advanced 21.2 percent, driven by non-residential construction, mainly by the flagship works of the current administration, with a growth of 31.8 percent; while residential (they specialize in the construction of single-family homes, apartment complexes, condominiums and housing projects) advanced 8.7 percent annually in January and imported transportation equipment soared 51.7 percent.

By component and with seasonally adjusted data, in January 2024, expenses incurred on total machinery and equipment – of national and imported origin – fell 0.2 percent monthly, linking four consecutive declines. For its part, compared to January 2023, the advance slowed to 6.0 percent.

National machinery and equipment contracted 1.3 percent monthly in the first month of the year and 1.7 percent annually. Meanwhile, imported goods advanced 0.8 percent in January compared to December and 11.5 percent annually.