Mexico’s S&P Global Manufacturing PMI rose to 48.9 in March from 47.1 in February, signaling the slowest contraction in five months. New orders fell for the fifth straight month at a moderate pace, the weakest over this period, as firms cited demand weakness, inflation, US tariffs, and the Middle East war. Export orders declined at their weakest rate in five months, with lower demand from Japan and the US. Production fell at the slowest pace since October.
Input costs rose at a six-month high amid tariffs, unfavorable exchange rates, and Middle East tensions, with higher outlays on chemicals, energy, metals, and fuel. Despite intensifying cost pressures, selling prices rose only slightly. Employment fell as firms placed workers on technical breaks and non-renewed contracts. Supply disruptions persisted, with material delays of one to three weeks due to highway blockades and geopolitical tensions.
