Gross fixed investment in Mexico slumped 7.4 percent year-on-year in May of 2019, following an upwardly revised 5.8 percent fall in the previous month and compared with market expectations of a 6.5 percent drop. It was the fourth straight monthly decline in private investment and the steepest since April of 2017. Investment in construction activity declined 9.1 percent, more than a 4.5 percent decrease April, as both residential (-8.4 percent from -3.8 percent) and non-residential investment (-9.7 percent from -5.2 percent) shrank further. Also, investment in machinery and equipment continued to fall (-5.4 percent from -7.5 percent), due to national (-5.7 percent from 0.3 percent) and external demand (-5.2 percent from -11.8 percent). On a seasonally adjusted monthly basis, fixed investment dropped 2.7 percent, down from a downwardly revised 1.2 percent rise in April. Private Investment in Mexico averaged 2.89 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.
Private Investment in Mexico is expected to be 3.10 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 2.50 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.