Mexico: Consumer confidence rises to one-year high
July 8, 2016
The unadjusted index of consumer confidence elaborated by INEGI rose from 90.9 in May to 93.5 in June and overshot the 92.2 the markets had expected. June’s result represented the highest level since June 2015. Adjusted for seasonal factors, the index increased for second consecutive month.
The rise in confidence was welcomed by the markets and the details of the report are somewhat more encouraging. Households’ assessment of their current economic situation as well as economic prospects improved substantially over the previous month. In addition, consumers’ opinions of the country’s current economic situation as well as economic prospects were more positive than in May. The June survey also showed that consumers were more upbeat regarding purchasing big-ticket items now.
The latest reading in June continue to reflect the fact that consumer fundamentals remain strong: growing employment, rising real wages and remittances, and credit expanding at a robust pace. The high level of confidence registered in June suggests that private consumption remained resilient in Q2.
Author: Ricardo Aceves, Senior Economist