Mexico | Back-to-school season temporarily boosts private consumption

Summary

The BBVA Research Big Data Consumption Indicator reported a 2.5% MoM increase in August, temporarily driven by the back-to-school season (goods consumption grew 4.4%, and spending on services rose 1.6%).

Key points

• Key points:
• Although the August figure represents a relief for this segment of economic activity, it is not enough to consolidate a recovery signal in the second half of the year, particularly in light of the continued deterioration in consumer confidence.
• By components, within the goods segment, spending on food grew 3.4% MoM, while consumption of health care goods increased 2.1% MoM.
• As for the services segment, restaurant consumption grew 5.4% MoM, while hotel spending rose 2.5% MoM.
• We estimate that overall domestic demand will continue to show slow growth for the remainder of the year, given that both households and businesses perceive fewer opportunities to make purchases.

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