- The manufacturing industry generates 5% of GDP
BBVA analysis highlights 5% growth in June
Julio Gutierrez, La Jornada. Wednesday, July 29, 2026. Trade tensions between Mexico and the United States seem endless, but the national manufacturing industry found its main boost in demand from its neighbor. In June, this sector grew 5.5 percent compared to the same month last year, revealed an analysis by BBVA.
During the first half of the year, the economy grew 2.8 percent compared to the same period in 2025, with high demand coming from the automotive sector. The financial institution now anticipates a reduction in uncertainty levels, which will allow investment projects in the sector to move forward.
Manufacturing, considered the engine of the country's industrial activity, contributing around one-fifth of the gross domestic product (GDP), is responsible for transforming raw materials into goods such as automobiles, food, machinery, electronic equipment, and chemical products.
According to BBVA's analysis, in June this industry benefited from the strong performance of the automotive sector, a result of increased production of vehicles and auto parts in the United States. This reflects that, despite trade differences between the two countries, the integration of North American supply chains is boosting national activity.
"The BBVA Research Multidimensional Manufacturing Indicator grew 5.5 percent year-on-year in June, reaching an average year-on-year variation of 2.8 percent in the first six months of the year," the BBVA analysis states.
It noted that the performance from January to June marks a change in trend, as the first half of 2025 registered a contraction of 2 percent.
BBVA explained that the increased dynamism observed in June was due to the recovery of the automotive sector in the United States, following several months of weakness.
According to data from the U.S. Bureau of Economic Analysis (BEA), vehicle and auto parts manufacturing in the United States accumulated annual growth of one percent at the close of the first half of the year, four percentage points above the level recorded in the same period of 2015.
At the same time, U.S. retail vehicle sales grew 2.3 percent in June compared to May, their largest increase since March 2015, a sign of greater demand for these goods that ultimately benefited Mexican manufacturing.
Investments on the Horizon
The significance lies in the fact that the automotive industries in Mexico and the United States operate under an integrated supply chain, so an increase in the production and sale of vehicles in the neighboring country's market raises the demand for auto parts, components, and other inputs manufactured in Mexico.
BBVA's analysis department believes that in the coming months, as trade tensions ease and uncertainty between the two nations decrease, all investment projects currently on hold can be unlocked.
https://www.jornada.com.mx/2026/07/29/economia/017n1eco
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