NL construction closes down in 2024

In December of last year, the construction sector in Nuevo León maintained the downward trend that it had registered in the last months of 2024, reporting a decrease compared to the previous month, as well as compared to the same month last year, this being the first annual decline since December 2022.

The National Institute of Statistics and Geography (INEGI) indicated that in December the value of production by construction companies for projects developed in the state amounted to six thousand 24 million pesos (mdp), which implied a decrease compared to the previous month, in December pesos, of 6.54 percent.

In annual terms, that is, compared to the same month a year ago, the decrease was 4.93 percent, which is the first decrease in 24 months, since the last annual decrease reported by the sector was in December 2022 compared to the same month in 2021.

In the month in question, the private sector developed projects for an amount of 5,507 million pesos, which implied, in constant December pesos, a decrease of 4.02 percent compared to November and 2.82 percent compared to the same month in 2023.

For its part, the works executed by the public sector amounted to only 517 million pesos, a reduction of 26.92 percent compared to November and 22.8 percent compared to December 2023.

Analysts said the contraction in state construction was due to the fact that both the private and public sectors reported lower activity in December, with both sectors recording monthly and annual contractions.

At the national level, as of December 2024, the sector showed that the total value of production grew at a monthly rate of 0.29 percent, after five months of declines according to seasonally adjusted figures, said Gabriela Siller, director of economic analysis at Banco Base.

“At an annual rate, the total value of production continues to show deterioration, falling by 21.49 percent, accumulating eight consecutive months of decline. Since October 2023, the value of production has decreased, evidencing a deterioration in the construction sector,” he said.

He said that in 2024, the value of total production shows a drop of 6.57 percent compared to 2023, being the largest contraction in a year since 2020 when it contracted 17.91 percent due to the pandemic.