The value of works in the construction industry, the largest consumer of steel in Mexico, registered a nominal increase (without adjustment for inflation) of 37.9 percent, year-over-year, in September. It is the 31st consecutive annual increase, according to SteelOrbis analysis of data from the national statistics agency Inegi.
In real terms (adjusted for inflation), the annual increase was 36.4 percent. Considering today's peso-dollar exchange rate, the value of work in the construction industry is equivalent to $3.47 billion.
In September, consumption of rod, wire rod and wire increased 16.2, 17.8 and 5.2 percent, year-over-year, respectively, according to data from the Mexican Chamber of the Iron and Steel Industry (Canacero) reviewed by SteelOrbis.
Of the 32 states of the country, in September the value of works grew in 26, of which Quintana Roo stood out with an increase of 300 percent, Oaxaca with 158 percent, and Hidalgo with 147 percent. Campeche and Durango increased just over 100 percent. Those 26 states contribute 83.8 percent of the total value.
In contrast, in six states the value of construction works decreased. Tabasco and Morelos stood out with losses of more than 54 percent. In the State of Mexico (the second largest economy in Mexico) it decreased 29.9 percent and in Mexico City (the largest economy in Mexico by its contribution to GDP) it decreased 1.8 percent. These six entities contribute 16.2 percent of the total value for September.
The accumulated value in the January-September period, the value of construction, is MXN 473 billion, which at today's exchange rate represents $22.79 billion.
In the accumulated until September, the five largest construction economies in the country are Quintana Roo (9.3 percent of the national total), Nuevo León (8.0 percent), Jalisco (7.0 percent), Campeche (6.7 percent) and the City from Mexico (5.5 percent). Together the five contribute 36.6 percent of the total.
The construction industry contributes 6.0 percent of Mexico's total GDP ($1.59 trillion).