Mexico: Consumer confidence retreats after reaching three-year high
September 5, 2011
In August, the consumer confidence index (ICC, indice de Confianza del Consumidor) dropped to 93.4 points from 95.5 points in July, which had represented the highest level since April 2008. The reading came in below market expectations that had the index falling to 94.3 points. With the August drop, consumer confidence fell further below the 100-point threshold that separates optimism from pessimism. A month-on-month analysis confirms the deterioration in consumer sentiment, as the ICC declined 1.3% in seasonally adjusted terms over the previous month. The drop was mainly driven by drop in the willingness to purchase of durable consumer goods as well as of a worsening in households' assessment of their own state. In contrast, the assessment of the current state of the overall economy was positive for the third month in a row.