Overview of Consumer Confidence Trends
According to the National Institute of Statistics and Geography (Inegi), Mexico’s consumer confidence has shown a positive trend for the second consecutive month in August. The Indicator of Consumer Confidence (ICC) reached 46.7 points on a seasonally adjusted basis.
Compared to the previous month, consumer confidence increased by 0.7 points, marking two months of growth. This improvement places consumer confidence at its highest level since December 2021, when it stood at 46.9 points.
Monex’s Analysis
Monex, a financial analysis firm, noted that while the current consumer confidence level presents challenges, factors such as reduced inflation pressures and stable employment could potentially bolster consumers’ outlook.
However, on an annual basis, the ICC showed a decline of 0.7 points.
Stagnant Household Economic Perception
Amid global economic uncertainty, the perception of current economic conditions by household members remained stagnant in August. This was the only indicator that showed no change compared to July.
Despite this, with lower inflation pressures, the component related to the outlook for purchasing furniture and appliances saw the most significant growth, increasing by 1.1 points.
The expectation of the country’s economic situation over the next 12 months also advanced by 1 point compared to the previous month.
Regarding the expected economic situation of household members in one year, consumer confidence rose by 0.8 points, followed by the current economic situation of the country, which improved by 0.6 points.
Monex further commented that while consumers have a more favorable outlook on the country’s current and future situation along with purchasing opportunities, complementary indicators reflect labor market deterioration and consumer caution regarding immediate consumption (food, clothing, and footwear) due to increased economic pessimism and concerns about their current savings capacity.
Key Questions and Answers
- What is the current state of Mexican consumer confidence? Consumer confidence in Mexico has improved for the second consecutive month in August, reaching 46.7 points on a seasonally adjusted basis.
- How does this compare to previous months? Compared to the previous month, consumer confidence increased by 0.7 points.
- What are the challenges mentioned by Monex? Monex acknowledges that consumer confidence still faces challenges, such as ongoing labor market concerns and cautious consumer spending due to economic pessimism.
- What factors could potentially improve consumer outlook? Monex suggests that reduced inflation pressures and stable employment could positively impact consumer confidence.
- How does the household economic perception fare? Despite overall consumer confidence improvement, the perception of current economic conditions by households remains stagnant.
