Gross fixed investment in Mexico dropped 8.6 percent year-on-year in October 2019, following a 6.8 percent fall in the previous month. It was the ninth consecutive monthly decrease in private investment and the sharpest since June. Investment in construction went down 8 percent, after decreasing 7.3 percent in September, dragged down by both residential (-5.9 percent vs -3.5 percent) and non-residential (-9.4 percent vs -10.7 percent). Also, investment in machinery and equipment declined 9.5 percent, faster than a 6.1 percent fall in the prior month, of which national (-6.1 percent vs -0.6 percent) and external demand (-11.1 percent vs -9.9 percent). On a seasonally adjusted monthly basis, fixed investment decreased 1.5 percent, after a downwardly revised 1.1 percent decline in September. Private Investment in Mexico averaged 2.78 percent from 1994 until 2019, 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. source: Instituto Nacional de Estadística y Geografía (INEGI)
Private Investment in Mexico is expected to be 2.00 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 2.30 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.
Mexico Gross Fixed Investment
The Gross Fixed Investment in Mexico measures the total value of all acquisitions of fixed assets, both tangible and intangible, obtained as a result of a production process. Those are only ones which can be repeatedly used in other production processes in a period longer than one year. The value represents a year over year change of the gross fixed investment, obtained by aggregating the constant values of machinery and equipment of both national and foreign origin and of construction. They are: buildings, machinery, equipment, transport equipment, software, literary originals and other tangible and intangible fixed assets and additions and upgrades meant to prolong the usage or increase capacity. Considering the machinery and equipment of national origin, only new products are counted. Both new and used imported machinery and equipment increase the value of assets available in the country. The construction gross fixed investment index refers to the investment cost valued at the buyers cost.