Mexico: Consumer confidence falls to lowest level in over three years
February 5, 2014
Consumer confidence faltered at the beginning of the year. The unadjusted index of consumer confidence published by the national statistical institute (INEGI) fell from 89.7 points in December to 84.5 points in January. The drop took market analysts by surprise as they had expected the index to rise to 92.0 points.
The sharp decrease in January was broad-based and reflected households' more pessimistic views regarding both the current national economic situation and their own economic situations. In addition, the survey showed that consumers are less optimistic regarding the future of the country's economy and their own economic prospects.
LatinFocus Consensus Forecast panelists expect private consumption to grow 3.7% in 2014, which is unchanged from last month's projection. For 2015, the panel sees private consumption expanding 3.5%.
Author: Ricardo Aceves, Senior Economist