Mexico: Consumer confidence falls for third consecutive month
November 4, 2013
Mexican consumer sentiment decreased for the third consecutive month and now sits at its lowest level since December 2011. The unadjusted index of consumer confidence published by the national statistical institute (INEGI) fell from 94.1 points in September to 91.2 points in October. The decrease in consumer optimism exceeded market expectations of a drop to 92.5 points.
October's decline was broad-based and reflects households' less optimistic perceptions regarding their current economic situations and the country's overall economic situation. Consumers were also less optimistic regarding the outlook for their economic prospects and the future situation of the country's economy. The decline in the current conditions sub-gauges likely reflects the impact of the hurricanes that hit the country in mid-September, while the impact of the fiscal reform is likely reflected in the expectations sub-components of the index.
LatinFocus Consensus Forecast panelists expect private consumption to grow 2.8% this year, which is down 0.4 percentage points from last month's projection. For next year, the panel sees private consumption expanding 3.9%, which is down 0.2 percentage points from last month's estimate.
Author: Ricardo Aceves, Senior Economist