Background on Claudia Sheinbaum and Her Impact
Claudia Sheinbaum, the first female president of Mexico City, took office in October 2018. Her leadership coincided with the highest historical level of consumer confidence at 49.3 points, surpassing the 44.3 points recorded during the beginning of Andrés Manuel López Obrador’s six-year term in December 2018.
Economic Factors Affecting Consumer Confidence
Towards the end of 2019, economic cooling, downward revisions in Mexico’s GDP growth for the year, and Donald Trump’s victory in the U.S. presidential elections negatively impacted consumer confidence.
Generalized Improvement in April
According to the Instituto Nacional de Estadística y Geografía (Inegi) report, in April, the improvement was generalized as all five components of the Consumer Confidence Index (CCI) showed monthly advances.
- Furniture and Appliance Purchases: The possibility of buying furniture and appliances increased by 2.2 points, amidst a context where inflation continues to converge towards the Banxico target of 3% ±1 percentage point.
- Economic Outlook: Consumers expected the country’s economic situation to improve in 12 months, with a 1.3-point advance.
- Current Economic Situation: The perception of the current economic situation within households improved by 0.8 points.
- Future Economic Situation: Household members’ perception of their future economic situation rose by 0.5 points.
Key Questions and Answers
- What is the Consumer Confidence Index (CCI)? The CCI measures consumers’ optimism about the economy’s health and their personal financial situation. It consists of five components, including expectations for the national economy, current economic conditions, and future economic prospects.
- Why did consumer confidence drop in late 2019? Economic cooling, downward revisions in Mexico’s GDP growth for the year, and Donald Trump’s victory in the U.S. presidential elections negatively affected consumer confidence.
- What recent improvements have been noted in the CCI? In April, all five components of the CCI showed monthly advances. Notable improvements include a 2.2-point increase in the possibility of buying furniture and appliances, a 1.3-point advance in the expected economic situation in 12 months, and a 0.8-point improvement in the perception of the current economic situation within households.
