Mexico: Consumer confidence slips in July
August 6, 2015
Consumer confidence fell in July, losing the ground gained in June. The unadjusted index of consumer confidence elaborated by INEGI fell from 94.7 points in June to 92.2 points in July and also undershot the 94.6 points the markets had expected. The consumer confidence index fell a seasonally-adjusted 1.9% over the previous month, which contrasted the 2.0% increase registered the previous month.
July’s headline figure was accompanied with sharp falls in most subcomponents. Although consumers’ view of the current economic situation improved further in July, their economic prospects decreased over the previous. Moreover, the subcomponents regarding consumers’ opinions about both the current and future national economic situation saw sharp declines compared to the previous month. Analysts suggest that the unexpected fall in consumer confidence in July might have reflected several factors. Among these factors are the negative press regarding security-related issues occurred in recent weeks, the sharp depreciation of the national currency, which tends to be associated by households with deteriorating economic conditions in the country as well as the still-weak economic recovery.
Author: Ricardo Aceves, Senior Economist