Mexico: Consumer confidence remains subdued
June 3, 2011
Consumer sentiment dropped for the fourth month in a row, which confirms the notion of a protracted recovery in private consumption in the coming months. In May, the index of consumer confidence (ICC, indice de Confianza del Consumidor) dropped from 89.7 points in April to 89.3 points in May, which contrasted market expectation that had the index rising to 90.1 points. The index has lingered below the 100-point threshold that separates optimism from pessimism since April 2008. A month-on-month analysis does not confirm the decline, yet supports the notion of a gloomy mood amongst consumers, as the ICC rebounded a modest 0.8% in seasonally adjusted terms (April: -3.1% mom). The monthly increase was mainly the result of a stronger willingness to make major purchases of durable consumer goods (+5.9% mom), which reversed a contraction of virtually the same magnitude in the month before.