Mexico: Consumer confidence inches down for second month in a row
July 4, 2012
In June, the consumer confidence index elaborated by the statistical institute (INEGI) edged down to 95.5 points from 96.3 points in May. The reading marked the second consecutive monthly drop and defied market expectations that had the index rising to 97.7 points. Owing to June's subdued print, consumer sentiment is now only 2.7% higher than in the same period last year, well below the 7.8% increase tallied in May. The decline was broad-based, with year-on-year variation in all five major sub-components deteriorating over the preceding month. In particular, the willingness to make major purchases plummeted from a 23.3% annual increase in May to a 3.2% rise in June. Moreover, respondents' expectations of their own situation over the next 12 months decreased 0.3% compared to June 2011. A month-on-month comparison corroborates the deterioration suggested by the annual data, as consumer sentiment dropped 1.3% in seasonally adjusted terms, following on a flat print in May (previously reported: +0.2% month-on-month).