Mexico’s national statistics agency, INEGI, revised second-quarter gross domestic product growth to 0.6% from a preliminary 0.7% on a seasonally adjusted, quarter-on-quarter basis. On an unadjusted basis output was flat versus a year earlier, underscoring the economy’s fragile momentum despite a modest pickup in services activity. June’s Economic Activity Index (IGAE) showed a 0.22% monthly gain and 1.3% expansion from a year earlier, with services offsetting minor contractions in industry and agriculture. Price pressures continued to cool. Consumer inflation slowed to 3.49% year-on-year in the first half of August, its lowest reading this year and below the roughly 3.6% median forecast. Core inflation eased to 4.21%. The overall price index slipped 0.02% versus the previous fortnight, helped by lower produce and poultry costs, while some services and energy prices edged higher. The softer data arrive as Banco de México extends a gradual easing cycle that began last year, trimming its policy rate to 7.75% in early August after slowing the pace of cuts to 25 basis points. Policymakers have signalled further reductions will depend on inflation’s convergence to the 3% target against a backdrop of tepid but positive output growth and external headwinds, including U.S. trade uncertainty. Analysts expect activity to decelerate in the second half of 2025 but see limited risk of recession provided domestic demand and nearshoring investment hold up.