In June, Mexico’s industrial output improved from -0.8% to -0.4% compared to the previous year.
by VT Markets
/
Aug 11, 2025
Mexico’s industrial output improved slightly in June, changing from -0.8% to -0.4% compared to the same month last year.
This shift shows a small recovery in the industrial sector. The contraction is narrowing compared to previous months, indicating a gradual positive change in Mexico’s industrial performance.
In June, industrial output data indicated a slight recovery, signaling that the worst part of the slowdown may be over. This information is crucial as we prepare for the upcoming weeks.
Recent data adds to this cautious optimism. The inflation rate for July 2025 is at 4.1%, continuing a slow downward trend. This development has likely helped stabilize the Mexican Peso against the dollar, which is around the 17.30 level. These trends suggest that economic resilience is slowly building.
For derivative traders, it may be a good strategy to sell out-of-the-money puts on the iShares MSCI Mexico ETF (EWW). This approach benefits from the stable and improving outlook while allowing traders to earn premiums despite lingering market uncertainties. We don’t expect a huge rally, but we do see support forming under key Mexican assets.
Looking back at the aggressive rate hikes in 2023 and 2024, the central bank’s choice to keep rates steady in early August 2025 indicates a major policy shift. We think Banxico is now ready to pause and evaluate the effects of its past decisions on the economy. This change lowers the risk of further economic shocks from monetary policy.
A key consideration is the health of the U.S. economy, Mexico’s largest trading partner. The latest U.S. jobs report for July 2025 shows modest but steady growth, which is a positive sign for demand for Mexican exports. We will be closely monitoring U.S. consumer spending for insights into Mexico’s manufacturing sector.
by VT Markets
Aug 11, 2025
Insights 
VT 
