Mexico | Private spending slows in September as confidence declines

Summary

The BBVA Research Big Data Consumption Indicator reported a (-)0.3% month-on-month (MoM) decline in September, reflecting contractions in both goods and services segments.

Key points

• Key points:
• The weaker growth in private spending is occurring in a context of deteriorating consumer expectations and slower growth in real wage income.
• By components, the goods segment (-0.1% MoM) showed mixed dynamics: spending on food increased 1.0% MoM, while the rest of goods consumption as a whole fell (-)0.6% MoM.
• In the services segment (-1.0% MoM), tourism-related components recorded significant declines in activity: hotel spending dropped (-)3.1% MoM, while restaurant consumption fell (-)4.4% MoM.
• We expect domestic demand to remain weak for the rest of the year, as households and businesses remain cautious regarding the economic outlook in the coming months.

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