Mexico | Consumption slows down in July amid the continued weakness of services

Summary

The BBVA Research Big Data Consumption Indicator grew 0.5% MoM growth in July with seasonally adjusted figures, given the contraction of the services sector (-0.8%) and the modest growth in spending on goods (1.1%).

Key points

• Key points:
• Tourism related services showed the greatest weakness: spending on hotels fell for the third consecutive month (-4.8%), while consumption in restaurants showed zero growth.
• Within the goods segment, food consumption grew 3.6%, and spending on health care goods showed a minimal variation of 0.4%, the lowest since February.
• Although the rapid growth of household spending in the first four months of the year boosted private consumption in 1H22, the subsequent months have slowed down as families face higher prices and a more restrictive monetary policy.
• We anticipate the weakness in domestic demand will extend into the second half of the year and more deeply in 2023.

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