Mexico: Consumer confidence rises again, reaching the highest level since March 2008
August 4, 2011
Consumer sentiment is finally showing signs of a more meaningful recovery. In July, the index of consumer confidence (ICC, indice de Confianza del Consumidor) increased to 95.5 points from 93.0 points in June. The reading marks the highest level since March 2008 and beat market expectations that had the index rising to just 92.2 points. Moreover, owing to the robust increase, the index now sits closer to the 100-point threshold that separates optimism from pessimism. A month-on-month analysis confirms this significant improvement in consumer sentiment, as the ICC added a seasonally-adjusted 1.9% over the previous month (June: +1.7% month-on-month), which represents the most vigorous monthly increase since March 2010. The monthly increase was broad-based, yet mostly driven by an improvement in the willingness to purchase durable consumer goods. Furthermore, consumers are now more confident in the future of the household?s economic situation as well as that of the overall economy, with both sub-indices exceeding the 100-point threshold.