Mexico: Consumer confidence recovers some lost ground
January 8, 2014
Following four consecutive months of decline, confidence among consumers improved in December. The unadjusted index of consumer confidence published by the national statistical institute (INEGI) rose from a three-year low of 88.7 points in November to 89.7 points in December. The increase, nevertheless, fell short of the 92.0 points the market had expected.
The mild increase in December primarily reflects households' more optimistic, albeit timid, views regarding the current national economic situation. In addition, the December survey showed that consumers are more optimistic regarding the future situation of the country's economy. Conversely, households reported less optimism concerning both their current economic situations and their own economic prospects.
LatinFocus Consensus Forecast panelists expect private consumption to grow 3.7% in 2014, which is unchanged from last month's projection. For 2015, the panel sees private consumption expanding also 3.7%.
Author: Ricardo Aceves, Senior Economist