MEXICO CITY (Reuters) – Mexico will face “significant headwinds” for economic growth, as slowing activity in its oil and gas sector weighs on industrial production, Fitch Solutions Macro Research said on Friday.

“Slowing industrial output will create significant headwinds for Mexican growth over the coming quarters,” Fitch Solutions said, adding that underinvestment and mismanagement of Pemex had weighed heavily on industrial output.

Mexico’s industrial activity declined by 3.1%, seasonally adjusted, in May from the year-earlier month, the country’s national statistics agency reported earlier on Friday

Fitch Solutions said that while Mexican President Andres Manuel Lopez Obrador has allotted more funding for Pemex in recent months, that would likely have a limited impact in the near term and production would continue to decline.