The indicator declined for the third consecutive month in 2025, reflecting further declines in the perception of whether it is a good time to invest and in the assessment of the country's economic situation, INEGI reported.
Business confidence declined for the third consecutive month in 2025, reflecting further declines in the perception of whether it is a good time to invest and in the assessment of the country's economic situation, reported the National Institute of Statistics and Geography (INEGI).
The Global Indicator of Business Sentiment and Confidence (IGOEC), which measures the perception of business leaders in manufacturing, construction, trade, and private non-financial services, fell 0.8 points in March compared to the previous month, reaching 49.3 points—the pessimistic level. This was the lowest since January 2023.
The decline was more pronounced on an annual basis, down 5.4 points compared to March 2024.
The decline in business confidence comes amid uncertainty over U.S. President Donald Trump's tariff policies.
"We believe that the business consensus will remain cautious in the face of the economic slowdown in the fourth quarter of 2024 and into the first months of 2025, primarily due to the trade and tariff environment between the United States and Mexico," explained Janneth Quiroz, Director of Economic, Foreign Exchange, and Stock Market Analysis at Monex.
He added that business prospects deteriorated in March due to uncertainty about the country's current and future economic situation, as well as limited investment prospects.
The IGOEC index for the trade sector recorded the largest drop, with a 1.4-point decline in its monthly comparison. Business leaders increased their pessimism regarding the right time to invest (-4.3 points) and the country's future economic situation (-1.1 points).
The decline in confidence also affected the private non-financial services business sector, which fell 0.8 points in March and showed greater pessimism about the country's future economic situation (-2.1 points).
The manufacturing sector closed the reference month with a 0.4-point decrease compared to March 2024, returning to negative territory after widespread declines across its components. The greatest concerns were concentrated in the category measuring willingness to invest (-0.6 points) and in companies' perception of the current economic situation (-0.6 points).
The construction sector has spent seven months below the 50-point threshold, with a record of 46.9 points in March, equivalent to a drop of 0.1 points.
This performance reflects a perception of uncertainty, mainly in the evaluation of the company's future economic situation (-2.8 points) and the country's current economy (-1.0 points).
