Consumer confidence rose by 0.5 in February: Inegi

consumer confidence registered an increase of 0.5 points in February compared to January, continuing the upward trend registered since November last year, National Institute of Statistics and Geography (Inegi) and Bank of Mexico (Banxico).

The mood of Mexicans, measured by the indicator of consumer confidence (ICC), is located at the level of 44.8 points. On an annualized basis, this represents an increase of 1.2 points.

According to Inegi and Banxico, four of the five components included in it increased monthly in February: that is, points that evaluate present and future economic situation of the countryas well as the current Houses and current ability of household members to perform purchase of durable goods.

In contrast, the indicator reflecting the expected economic situation of household members over 12 months was a monthly decline of 0.9 points.

Thus, the autonomous body clarified that the indicator, reflecting expectations regarding the expected economic state of the country during the year in relation to the current situation, increased by 0.1 points monthly in February; while year-on-year it increased 0.7 units

Meanwhile, the variable measuring consumer perception of the economic situation in the country today, compared to what prevailed 12 months ago, has increased. 1.1 monthly points and 2.6 inches yearly.

Consumer sentiment hit 40.9 points at its lowest level since March 2021 last August, amid slower global economic growth and high global inflation.

However, in September it reported a slight monthly increase in 0.1 points and in November and December it rose again to 42.5 points in the last month of 2022.

On February 23, Inegi reported that general inflation Mexico moderated more than expected during the first two weeks of the month, reaching 7.76% year on year after the decline. This figure turned out to be less than the 7.80% expected by the market. However, this is still above Banxico’s target of 3% +/- 1 percentage point.

The central bank raised its headline inflation forecast last Wednesday, estimating that it will peak in the first quarter of 2023 and end the year at a low level. 4.9% per year, against the previous forecast of 4.1%.

Likewise, it cut to 1.6% its growth forecast for gross domestic product (GDP) for 2023 compared to the previous forecast of 1.8%, taking into account the slowdown in the US economy.

Source: Aristegui Noticias