Mexico's Economic Activity Flat in May
Mexico's economy hit pause in May 2026. The National Institute of Statistics and Geography (INEGI) reported the Timely Indicator of Economic Activity (IOAE) showed zero monthly change and 1.0% annual growth for the month, released June 18.
The reading painted a mixed picture across sectors. Secondary activities, which include manufacturing, construction, and mining, gained 0.7% year-over-year but fell 0.2% month-over-month. Tertiary activities, encompassing commerce and services, powered ahead with 1.7% annual growth and held steady from April.
Key Figures
- Monthly IOAE change in May: 0.0%
- Annual IOAE growth in May: 1.0%
- Secondary sector annual growth: 0.7%
- Tertiary sector annual growth: 1.7%
- Secondary sector monthly change: -0.2%
Improvement from Last Year
Compared to May 2025, the numbers improved. Last year's reading showed -0.1% annual growth and -0.4% monthly contraction. The INEGI report carries preliminary data and excludes the primary sector, which gets added in later revisions.
Banco de México continues projecting 1.1% GDP growth for 2026. The full Global Indicator of Economic Activity for May is scheduled for release July 23.
What Is the IOAE?
The Timely Indicator of Economic Activity combines secondary and tertiary sector data (manufacturing, construction, mining, commerce, and services). It serves as an early read on the more comprehensive Global Indicator, published with a longer lag. The primary sector is excluded and added later.
Sources
- https://puentelibre.mx/economia/cero-avance-economia-mexico-mayo-ioae-calcula-inegi-junio-2026/
- https://www.elfinanciero.com.mx/economia/2026/05/28/banxico-recorta-prevision-de-crecimiento-economico-a-11-por-ciento-para-este-ano/