Private investment in Mexico rose 1.6 percent year-on-year in January 2019, rebounding from a 6.8 percent fall in the previous month. Construction activity investment increased 2.9 percent, after declining 5.0 percent in December, mainly driven by residential (6.9 percent from -1.9 percent) and non-residential (-0.7 percent from -7.8 percent). Also, investment dropped at a softer pace for machinery and equipment (-0.2 percent from -9.3 percent), mostly due to external demand (2.3 percent from -7.7 percent) and domestic (-4.6 percent from -11.7 percent). On a seasonally adjusted monthly basis, investment went up 8.0 percent, following an upwardly revised 1 percent decrease in the prior month. Private Investment in Mexico averaged 3.01 percent from 1994 until 2018, reaching an all time high of 33.10 percent in July of 1996 and a record low of -41.90 percent in June of 1995.
Private Investment in Mexico is expected to be 3.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Private Investment in Mexico to stand at 3.10 in 12 months time. In the long-term, the Mexico Gross Fixed Investment is projected to trend around 3.10 percent in 2020, according to our econometric models.