Timing
How's investment appetite looking for Mexican executives?
Is this a good time to invest?
Each month, over 3,500 businesses in Mexico are asked this question by INEGI officials to determine the overall business sentiment and investment appetite in the country.
Just six months ago, investment appetite amongst manufacturing executives reached 10-year level highs; highlighting the positive expectations for growth within the Mexican economy.
However, in the span of just three months investment appetite within the industry has taken a downward trend — contracting by more than 7% since the country’s election results in June of this year.
Although we won’t delve into the political implications of Sheinbaum's recent election, in today’s article we’ll present the shift in business confidence expectations in recent months, particularly from an investment appetite perspective.
Since the election’s results in early June of this year, 12 of the 15 industries tracked by INEGI have reported contractions of over 5% in their investment appetite indices — with 7 of them reporting double-digit drops.
On the other end, the only 2 industries with improvement in their investment perceptions were: textile and electronic products manufacturing.