Mexico: Consumer confidence deteriorates in July
August 4, 2016
Depressed consumer confidence deepened in July. The unadjusted index of consumer confidence elaborated by INEGI fell sharply from 93.5 in June to 88.9 in July. The result undershot the 92.5 the markets had expected. The seasonally-adjusted indicator suggested a sharper deterioration in confidence as it decreased 1.8% over the previous month (June: +0.4% month-on-month).
All sub-components declined in July and a substantial decrease was registered in consumers’ perceptions of the current national economic situation as well as of the country’s future conditions. Households’ expectations of their own financial standing also decreased massively in July. Some analysts believe that the strong deterioration in consumers’ perceptions of the national economic situation could be explained by the widespread demonstrations by one the country’s largest teachers’ unions and the persistent weakness of the currency, which consumers tend to associate with a deterioration of the economic outlook.
Author: Ricardo Aceves, Senior Economist