Mexico | Private consumption remains subdued in May

Summary

The BBVA Research Big Data Consumption Indicator (BDCI) increased 0.4% MoM in May (real), marking its first positive monthly reading since October.

Key points

• Key points:
• While this improvement is a favorable signal for economic activity, it remains incipient and does not yet confirm a change in trend.
• We expect a temporary boost to household spending associated with the FIFA World Cup, against a backdrop of weak underlying domestic demand and persistent uncertainty.
• Services spending grew 2.4% MoM, driven by tourism-related segments, including restaurants (+1.7% MoM) and hotels (+0.8% MoM). Goods consumption also improved, with food spending rising 1.3% MoM and healthcare-related goods spending increasing 1.8% MoM.
• Looking ahead, a sustained recovery in consumption will depend on stronger job creation and a reactivation of the industrial sector.

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