Mexico | Consumption Extends Slowdown into the Second Half of the Year

Summary

The BBVA Research Big Data Consumption Indicator reported a (-)1.3% MoM drop in July, due to the slowdown in the goods segment (-2.3% MoM) and the stagnation of the services component (0.1% MoM).

Key points

• Key points:
• The slow momentum in private consumption is materializing in an environment of high uncertainty (related to US trade policy) and lower growth in real wages.
• By component, within the goods segment, spending on food fell (-)1.2% MoM, while consumption of healthcare goods grew 0.6% MoM.
• Regarding the services segment, the components associated with tourism continue to show differentiated behaviors: consumption in restaurants fell (-)4.2% MoM, while spending in hotels grew 0.8% MoM.
• We anticipate domestic demand will show modest growth in the coming quarters, with slow performance in consumption and investment; the external sector will experience higher volatility due to the lack of clarity regarding the final framework for the terms of trade with the U.S.

Geographies

Topics

Tags