Mexico: Consumer confidence falls to 18-month low
July 3, 2013
In June, the unadjusted index of consumer confidence published by the statistical institute (INEGI) fell to 93.3 points from 95.2 points in May. The reading contrasted market expectations, which had the index improving to 95.4 points and marks the weakest level seen since December 2011. Compared to the same month last year, the index dropped 2.4%, which is double the 1.2% drop observed in May.
The deterioration was broad-based, with all sub-components registering lower levels compared to the previous month, in particular consumers' assessment about their current household situation as well as of their future household prospects, which recorded lows not seen since December 2011.
Compared to the previous month, consumer sentiment dropped 1.9% in seasonally adjusted terms, which contrasts the revised 0.7% drop recorded in the previous month (previously reported: -0.5% month-on-month).
LatinFocus Consensus Forecast panellists expect private consumption to grow 3.4% this year, which is down 0.1 percentage points from last month's projections. For next year, the panel sees private consumption expanding 4.0%.
Author: Ricardo Aceves, Senior Economist