Introduction to Mexican Private Consumption
In May 2025, Mexican families’ private consumption returned to negative territory, decreasing by 1% compared to the previous month. This outcome was worse than the Inegi’s (National Institute of Statistics and Geography) preliminary estimate of a 0.3% contraction.
Monthly and Annual Comparisons
The decline followed a 0.9% increase in April and resulted in private consumption being 0.9% lower than May 2024 on an annual basis, marking a return to negative numbers. From December to March, the variable had shown consecutive annual declines.
In its mid-July preliminary estimate, the Inegi projected a 0.3% contraction in private consumption, making the actual decline more severe.
Breakdown of Consumption Components
May’s decrease originated from national consumption, which fell by 1.3%. Within this category, goods consumption contracted by 2.4%, and services consumption decreased by 0.1%. Meanwhile, consumption of imported goods increased by 0.3%.
Contrasting Data from Inegi’s Retail Sales Report
These results contrast with the 1.8% monthly increase in retail sales reported in Inegi’s Monthly Survey of Commercial Enterprises (EMEC).
Accumulated Consumption Trends
Cumulatively, private consumption has fallen by 1.1% from January to May, contrasting with the 4.9% expansion observed during the same period in 2024.
Key Questions and Answers
- What is private consumption in Mexico? Private consumption refers to the spending by Mexican families on goods and services, which is a crucial component of the country’s economic health.
- Why is this decline significant? The unexpected drop in private consumption indicates a potential slowdown in economic growth, as consumer spending is a major driver of Mexico’s GDP.
- How does this compare to previous periods? Private consumption has shown negative annual growth from December 2024 to May 2025, contrasting with the positive growth observed during the same period in 2024.
- What are the components of private consumption? Private consumption comprises national and imported goods and services. In May, national consumption fell due to decreases in both goods and services, while imported goods consumption increased.
- How do these results contrast with other economic indicators? The decline in private consumption contrasts with the 1.8% monthly increase in retail sales reported by Inegi’s Monthly Survey of Commercial Enterprises (EMEC).
