New market study, "Mexico Infrastructure Report Q2 2015", has been published

We expect the recovery in Mexico's construction sector to continue to gain traction in 2015, with growth of 4.1% forecast. The industry posted positive growth in Q3 2014 in line with our expectation for growth to return from H2 2014, following six consecutive quarters of contraction. Residential and non-residential building will continue to be the immediate driving force behind the recovery, with infrastructure investment providing support to the sector over a five year horizon.

We expect a slow recovery in net output real growth in 2014 and leading indicators continue to support our outlook. In line with this view, industrial production data for construction posted the first month of expansion in June 2014 (and has continue in positive territory), following 19 months of contractions. This follows the first expansion in construction spending (on buildings) in May 2014, following 17 months of contractions for this indicator. These developments support our view, and our estimate for a 2% expansion in construction sector growth in 2014. Growth is expected to accelerate from 2015, with annual average real growth of 3.6% between 2015 and 2018. There is additional upside to this figure from the National Infrastructure Plan and Energy sector reform.

Full Report Details at
- http://www.fastmr.com/prod/977532_mexico_infrastructure_report_q2_2015.aspx?afid=301

Infrastructure High On The Presidential Agenda

In April 2014, President Enrique Peña Nieto outlined a significantly expanded version of his National Infrastructure Plan, setting the new investment target at MXN7.7trn between 2014 and 2018.

However, we remain concerned about institutional capacity and Mexico's ability to implement the programme given the poor precedent that was set during the execution of the previous plan. Indeed, the failed tender for the Mexico City-Queretaro High Speed Railway is an illustration of our concerns. As such, we believe 2014 will be crucial in assessing the timeframe over which the NIP will revitalise the country's depressed construction industry and will thus refrain from...

The Mexico Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Mexico Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Mexican infrastructure and construction industry.

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