Construction Cost Increases in Mexico

The National Institute of Statistics and Geography (INEGI) reported that during May—the second month in which a new statistical base is being used to prepare the National Survey of Construction Companies (ENEC)—the production value of these companies experienced a growth of 7.8 percent monthly and 18.2 percent annually. This performance marked the best result of the last five years and represents three consecutive months of increases. 

The value index was located at 90 points, a reading that is the best since its record value of 90.1 units in November 2019.

According to the institute, the subsector of civil engineering construction works (mainly that in charge of the public sector) has been leading with the greatest participation in the construction industry, leaving the building sub-sector in second position.

In the second quarter of the year there was an increase in industrial works related to the nearshoring in the center and north of the country, as well as civil engineering works, which generates good expectations in the recovery of the industry.

The ENEC is a new methodology used by INEGI that utilizes 2018 as the base year of reference point and has a sampling frame of 19,450 companies integrated from the Statistical Business Registry of Mexico. In addition, it includes construction companies with more than 73 million pesos per year in production value and/or with employed personnel greater than or equal to 250, making the confidence level 95 percent.

INEGI reported that the performance shown during the first half of 2023 is the best result obtained since 2019.