Mexico | Consumption grew 1.0% in June driven by services; the food sector lagging behind

Summary

Within the services segment, differentiated performance of tourism and entertainment, which continued to register contractions or modest growth

Key points

• Key points:
• The loss of dynamism in food spending represents the largest contraction since June 2021, and suggests effects on consumption derived from higher inflation.
• The weakness in tourism services suggests a recomposition of households demand for essential goods and services, amid high price levels and a more restrictive monetary policy.
• Although household spending has been favored by a gradual recovery of the credit portfolio and the continuous growth of the wage bill, these factors could lose dynamism in the coming quarters given the tightening of monetary conditions and a lower domestic demand.

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