Mexico’s construction activity declined by 15.6pc in January compared to the same month in 2019, because there were fewer civil projects being developed, which also impacted the steel industry.
Mexico’s crude steel production fell to 1.37mn mt in January from 1.63mn mt during the same month in 2019.
Compared to January 2019, civil engineering projects decreased by 19.8pc in January 2020, while specialized construction projects decreased by 17.5pc. Residential and commercial construction also declined on an annual basis by 12.2pc this past January, the National Statistic Agency (Inegi) said in a statement.
Employment in the construction industry and remuneration for workers decreased by 9.9pc and 6.3pc, respectively.
Last year, Mexico’s President Andrés Manuel López Obrador halted the construction of major infrastructure projects, such as Mexico City’s new international airport. However, the government also announced an infrastructure plan worth MXN859bn ($42.9bn), which includes developing 147 projects between 2019 and 2024. The steel and construction industries expect demand to increase this year because of these projects.