Mexico | Private Spending Slows in April Due to Uncertainty

Summary

The BBVA Research Big Data Consumption Indicator reported a (-)0.7% MoM drop in April, due to a contraction in the goods segment (-1.3%)

Key points

• Key points:
• The slowdown in private spending in April, in terms of its monthly variation, could already be reflecting the decline in consumer confidence due to the heightened uncertainty triggered by changes in US trade policy.
• Regarding spending on goods, food spending stagnated during the period (0.0% MoM), while spending on healthcare goods grew 1.6% MoM, with a year-over-year variation of 11.5%, the highest since April 2024.
• Regarding spending on services, the tourism-related segments showed differentiated performances: spending on restaurants fell (-)3.8% MoM, while the hotel segment grew 1.1%. MaM (after two consecutive declines in previous months).
• The postponement of consumer decisions in the face of a highly uncertain environment adds to the impact on employment resulting from lower production levels in manufacturing, a sector that is most exposed to external demand.

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