Gross fixed investment rose 5.6 percent annually in May

Mexico City. Gross fixed investment, which refers to business spending on machinery, transportation equipment and construction, grew 5.6 percent in May 2024 compared to the same month last year, a figure that was driven by the positive performance of construction, the National Institute of Statistics and Geography (Inegi) reported on Friday.

The Monthly Indicator of Gross Fixed Capital Formation (IMFBCF) observed a growth of 0.7 percent in the fifth month of the year, also due to the construction industry.

Data released by the autonomous body show that construction in May increased by 9.2 percent compared to the same period last year. The greatest dynamism was explained by the residential sector, which grew by 10.3 percent annually.

This same sector, which has remained the main driver of the Mexican economy due to public sector investments in the southeast, also explained the monthly growth of the IMFBCF, as construction advanced 2.4 percent monthly.

The purchase of machinery and transportation equipment increased by 2.1 percent in the fifth month of the year compared to the same period in 2023.

The greater dynamism was explained by the 3.7 percent increase in the purchase of imported transport equipment and machinery, although in particular, the acquisition of transport grew by 34.0 percent.

In its monthly variation, this component observed a decrease of 1.3 percent, after the import of transportation equipment, machinery, equipment and other goods decreased by 1.6 percent.