Background on BBVA Research and Its Indicators
BBVA Research, a division of BBVA, a leading Spanish bank, has released its Indicador de Consumo Big Data, which tracks private consumption in Mexico. The report indicates a 1.7% increase in total household spending from February to March, signaling a moderate reactivation of domestic demand.
Consumption Breakdown by Categories
According to the report, spending on goods rose by 1.5% on a monthly basis, while services saw a 2.4% increase. Saidé Salazar, an expert at BBVA Research, highlighted that this growth in private consumption during March is a positive sign for economic activity in the first quarter of 2025, which has already experienced declines in industrial activity.
Food and Hospitality Sector Performance
The food sector continued to perform well, with a 1.5% monthly increase and a 14.4% annual rise. Restaurants also experienced growth, with an 1.8% monthly increase. However, the hotel industry faced a downward trend, with a 2.5% decrease.
Entertainment and Other Services
Spending on entertainment dropped by 5.5% following February’s rebound, while other services grew by 3.4%, returning to early-year levels.
Uncertainties Affecting the Outlook
Despite the positive signs, uncertainties remain due to factors such as trade policy tensions in the United States. The report acknowledges these challenges while expressing optimism about the consumption rebound.
Key Questions and Answers
- What is BBVA Research? BBVA Research is a division of BBVA, a prominent Spanish bank, that provides economic analysis and insights on various sectors, including private consumption in Mexico.
- What does the 1.7% increase in private consumption indicate? The growth suggests a moderate reactivation of domestic demand, which is positive for the overall economic activity in Mexico.
- Which sectors performed well in March? The food sector and restaurants showed positive growth, while the hotel industry continued to face challenges.
- What uncertainties affect the consumption outlook? Trade policy tensions in the United States and other global factors contribute to the uncertainties surrounding the Mexican economy.
