Overview of Consumer Confidence and Spending
In September, the Consumer Confidence Index dropped by 0.2 points compared to the previous month. However, Alejandro Habib Nicolás, from the Enlace de Sectores Productivos of Mexico’s Secretaría de Economía, stated that there are no signs of imbalance in local consumer spending.
Habib, after attending the F_Talk Summit organized by Deloitte University and KM Zero, explained that household spending behavior remains stable. Indicators show a moderate dynamic in retail sales, with monthly monitoring of consumer spending profiles conducted by the Secretaría de Economía.
“We continuously monitor consumer spending profiles, with minor fluctuations of 3 to 5 percent monthly. As long as this pattern persists, there is no imbalance in consumer spending,” Habib emphasized.
Consensus on Healthy Consumer Spending
Diego Cosío, the CEO of the Asociación Nacional de Tiendas de Autoservicio y Departamentales (ANTAD), agreed that consumer spending remains healthy.
Cosío recalled that in August, retail sales increased by 7.6%, driven by back-to-school offers and purchases. He anticipates that September’s performance will remain strong, fueled by the sale of food, beverages, and products related to national holidays.
“The environment is unpredictable, so we must continue monitoring consumer spending monthly,” Cosío noted. “September’s numbers are about to be released. August was strong, and we’re growing healthily, surpassing our expectations.”
Consumer Confidence Index Details
In September, the Consumer Confidence Index decreased by 0.2 points to 46.5 points. The largest drop was in the category measuring households’ ability to purchase durable goods (like appliances, washing machines, and furniture), with a 0.8-point decline.
According to Monex Casa de Bolsa’s analysis, the reduced expectations for purchasing durable goods and lower confidence in the national economy may indicate more moderate consumer spending towards year-end.
Investments in the Retail Sector Advance
Habib highlighted that earlier this year, ANTAD partners announced joint investments of $3 billion for new store openings and distribution centers, which he said not only boosts consumption but also reflects confidence in Mexico.
He added that these openings have been gradual, according to each business’s needs, allowing for a small but steady economic growth.
“These investments convey a message of confidence in Mexico, which is what we need – more investment, both national and foreign direct investment,” Habib concluded.
Cosío, ANTAD’s president, confirmed that investments are progressing as planned without providing specific figures.
“We have four months left, but I believe we’re on track to grow more than 30% compared to the previous year,” Cosío commented.
Key Questions and Answers
- What was the change in the Consumer Confidence Index in September? The index decreased by 0.2 points compared to August, reaching 46.5 points.
- What is the current state of consumer spending in Mexico? According to Alejandro Habib Nicolás from the Secretaría de Economía, there are no signs of imbalance in local consumer spending.
- What factors contribute to the stability of consumer spending? Continuous monitoring of consumer spending profiles, with minor fluctuations of 3 to 5 percent monthly, ensures stability.
- What is the outlook for retail sales in September? Diego Cosío, ANTAD’s CEO, anticipates strong retail sales performance in September, driven by the sale of food, beverages, and products related to national holidays.
- What do the recent changes in consumer confidence indicate? Monex Casa de Bolsa’s analysis suggests that reduced expectations for purchasing durable goods and lower confidence in the national economy may indicate more moderate consumer spending towards year-end.
- What are the advancements in the retail sector’s investments? ANTAD partners announced $3 billion in joint investments for new store openings and distribution centers, reflecting confidence in Mexico’s economy.
