Mexico: Consumer confidence rises in May more in line with fundamentals
June 6, 2016
Consumer confidence jumped in May, recovering the ground lost in April. The unadjusted index of consumer confidence elaborated by INEGI rose from 88.9 in April to 90.9 in May and overshot the 90.0 the markets had expected.
The rise in confidence was the result of households’ more optimistic views about their current economic situations as well as about their economic prospects in the next 12 months. Consumers also reported a more optimistic view regarding their expectations for the future state of the economy, while their assessment of the current economic situation remained virtually stalled compared to the previous month. In addition, the sub-gauge of purchases of big-ticket items rose notably over the previous month.
The latest reading in May reflects better the fact that consumer fundamentals remain strong: growing employment, real wages rising and remittances and credit expanding at a robust pace.
Author: Ricardo Aceves, Senior Economist