Mexico | Private spending remains sluggish in July

Summary

The BBVA Research Big Data Consumption Indicator fell 0.4% MoM in July, posting a 4.5% YoY contraction. The weakness in spending was driven by a decline in goods consumption (-1.9% MoM), while services spending increased 1.1% MoM.

Key points

• Key points:
• Spending on tourism-related services showed a slowdown, with monthly declines in restaurants (-8.4%) and hotels (-6.2%).
• Gasoline consumption, used as a mobility indicator, decreased by 2.7% month-on-month, posting a year-on-year drop of 8.2%.
• Online consumption grew by 10.5% month-on-month, in contrast to the 2.1% contraction in physical stores.
• We anticipate sluggish growth in domestic demand in 2H26, as the transitory effects associated with the World Cup fade. In particular, moderate formal employment growth and continued household caution will constrain the pace of spending growth going forward.

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