Mexico: Consumer confidence records unexpected decline
May 4, 2011
Consumer confidence failed to recover for the third month in a row, supporting the notion of a protracted recovery in private consumption. In April, the index of consumer confidence (ICC, indice de Confianza del Consumidor) dropped one point to 89.7 points, remaining below the 100-point threshold that separates optimism from pessimism. The reading surprised the market on the downside, as analysts had expected the index to rebound to 93.0 points. In addition, a month-on-month analysis corroborates the decline as the ICC dropped 2.8% in seasonally adjusted terms. The monthly decline was broad-based, as all sub-components of the index dropped compared to March. However, as was the case in the last two months, the deterioration was fuelled by a sharp drop in respondents' willingness to purchase durable consumer goods (-5.9% mom).