The value of work in the construction industry, the largest consumer of steel in Mexico, registered a nominal increase (without adjustment for inflation) of 25.9 percent, year-over-year, in February, according to SteelOrbis analysis of data from the national statistics agency Inegi.
In real terms (seasonally adjusted data), the annual increase was 24.6 percent. In Mexican currency and considering today's peso-dollar exchange rate, the value of work in the construction industry is equivalent to $3.19 billion.
Of the 32 states in the country, in January the value of works grew in 19, of which Quintana Roo stood out with an increase of more than 230 percent. In Puebla and Campeche it grew more than 100 percent. In the southern state of Guerrero, where Category 5 Hurricane Otis destroyed the city of Acapulco in October of last year, the value of works increased only 16.5 percent and a share of the total was 1.0 percent at $30.6 million.
The 19 entities with growth contribute 73.8 percent of the total. In contrast, the 13 entities where the value of construction works decreased contributed the remaining 26.2 percent. Mexico City (the largest economy in Mexico by its contribution to GDP) and Nayarit stood out with falls of the order of 34.5 and 48.3 percent, year-over-year, respectively.
In February, the five largest construction economies in the Mexican market were the state of Mexico with 4.9 percent of the total, Jalisco with 5.5 percent, Campeche with 7.8 percent, Nuevo León with 9.9 percent and Quintana Roo with 12.4 percent. Together they contribute 40.6 percent of the total
According to the National Chamber of the Iron and Steel Industry (Canacero), the construction industry is the largest consumer of steel in the country.
This dynamic performance of construction contrasts with the steel industry. In February, rod consumption increased 2.4 percent, year-over-year, wire rod consumption increased 8.0 percent and wire consumption increased 0.6 percent, according to data from Canacero.
In 2023, the construction industry contributed 6.1 percent of Mexico's total GDP ($1.49 trillion), according to data from Mexico's System of National Accounts, reviewed by SteelOrbis.