MEXICO CITY, Aug. 6 (Xinhua) -- Gross fixed investment in Mexico fell by 7.4 percent in May compared to the same period last year, the biggest since April 2017, Mexico's national statistics institute Inegi said on Tuesday.
The plunge in the index, which measures business sector spending on fixed assets, such as production plants and machinery, is the biggest in a little over two years, when investment fell 11.1 percent in April 2017, Inegi said.
A breakdown in business spending shows investment in the field of construction tumbled 9.1 percent in May year on year, while investment in machinery and equipment dropped 5.4 percent.
Gross fixed investment in the first five months of 2019 dropped 3.2 percent.
Mexico's Banorte financial group expected the index to continue to slide.
"We believe the conditions for this sector will remain weak, underscoring lower economic growth expectations, which would be more negative for industries geared to the domestic sector that will be affected by less dynamic private consumption," Banorte said.
"We continue to think that investment will be the weakest link for gross domestic product expansion this year," Banorte added.
The Latin America's second-largest economy grew 2 percent in 2018.
For 2019, the Central Bank of Mexico has forecast growth of between 0.8 and 1.8 percent.