Mexico’s S&P Global Manufacturing PMI dropped to 47.7 in April 2026 from 48.9 in March, signaling a sharper deterioration in the sector. The index remained below the 50.0 threshold for an eighth straight month. New orders declined for the sixth consecutive month, leading to a marked drop in output that was steeper than in March. International sales also contracted, adding to demand weakness. Cost pressures intensified, with input prices rising at the second-fastest pace on record. However, firms passed on only limited increases, with output price inflation remaining subdued. Producers continued to trim inventories and scale back purchasing. Weak demand also drove job cuts, with firms reducing temporary staff and placing permanent workers on technical leave. Business sentiment turned negative, with firms expecting output to decline over the next 12 months amid cash flow constraints, high costs, weak investment, tariffs, and geopolitical tensions.

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