Mexico | Consumption loses steam in 3Q21: the reopening boom dissipates

Summary

In August, the BBVA Consumption Index fell (-)1.9% MaM (sa), which adds to the low growth of July (0.4%), pointing to a slowdown in pent-up demand in 2H21.

Key points

• Key points:
• Growth in 1H21 as the engine of private consumption in 2021
• The effect of the reopening fades faster for the services segment
• The tourism sector shows a slowdown after the strong recovery in 2Q21
• Slowdown in gasoline consumption in August, with a level 4% below its pre-pandemic period
• We anticipate the slowdown in consumption will continue ahead, in line with our GDP growth forecast of 6.3% for 2021

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