Mexico manufacturing output surges 4.1% y/y, largest gain since June 2023

Mexican manufacturing production grew 4.1% annually in August, the strongest pace in over three years, signaling a notable rebound in industrial activity. However, employment in the sector has declined for 42 consecutive months, indicating that output gains are not translating into job creation, possibly due to automation or structural shifts. The divergence between production and employment suggests a productivity-driven recovery with weak labor market absorption.