The value of construction works, the largest consumer of steel in Mexico, registered a nominal drop (without adjustment for inflation) of 0.9 percent, year over year, in June. This breaks the positive trend of the last 39 consecutive months, according to SteelOrbis' analysis of data from the national statistics agency Inegi.
In real terms (index number 2018 = 100), the value of construction decreased 2.9 percent, year over year. It was the second consecutive annual decline, after 20 months of growth.
In Mexican currency and considering today's peso-dollar exchange rate, the value of construction works in June was equivalent to $2.89 billion.
Of the 32 states in the country, the value of construction works increased in 17. All of them contributed 57.8 percent of the total.
In June, the five largest construction economies in the Mexican market were Quintana Roo with works worth $742 million (equivalent to 11.6 percent of the total), Nuevo León with $926 million (9.9 percent), Jalisco with $589 million (6.2 percent), Campeche with $418 million (6.2 percent) and Mexico City with $717 million (4.8 percent of the total). Together, the five contribute 38.6 percent of the total.
However, the Inegi data does not go hand in hand with the consumption of steel for construction. In the first half of the year, rebar consumption decreased 6.9 percent, wire rod consumption decreased 9.8 percent, wire decreased 15.6 percent and steel plate decreased 17.2 percent, year-over-year, according to Canacero data.
This year, the construction industry contributed 7.0 percent of Mexico's total GDP ($1.96 trillion), according to data from Mexico's National Accounts System, reviewed by SteelOrbis.