Consumer confidence recorded a modest rise of 0.3 points in May compared to April, data show National Institute of Statistics and Geography (Inegi) and Bank of Mexico (Banxico).
Mexican sentiment measured through Consumer Confidence Indicator (ICC), amounted to 44.4 points. On an annualized basis, this represents only a marginal increase of 0.8 points.
According to Inegi and Banxico, in May there was a monthly increase in the five components that make up its composition.
The item, which measures expectations about the expected economic situation of household members over the 12 months, has risen by only 0.1 points compared to the current one. In turn, the section estimating the savings they receive in their homes, compared to what they had a year ago, increased by 0.3 points.
The autonomous body clarified that the indicator, which reflects expectations about the expected economic state of the country during the year in relation to the current situation, increased monthly by 0.1 points in May; and in annual comparison it decreased by 0.6 units.
Meanwhile, a variable that measures consumer perceptions of a country’s economic situation today compared to what prevailed 12 months ago rose 0.7 points per month and reported a 2.5 year-on-year increase.
The ability of household members to purchase furniture, a TV set, a washing machine, and other household appliances, including the current ones, also increased by 0.7 points on a monthly basis and by 2.2 points on a monthly basis compared to last year. annual rate.
On May 24, Inegi reported that inflation Mexico’s overall index slowed more than economists had expected in the first half of May, hitting its lowest level in 20 months at 6.0% year on year after falling. However, this is still above Banxico’s 3% target +/- 1 percentage point.
On the other hand, inflation underlying, Considered the best parameter to measure price trajectory as it excludes high volatility products, it also fell more than expected to 7.45%, its lowest level since May 2022, falling for seven consecutive weeks.
Last week, Bank of Mexico raised growth forecast to 2.3% gross domestic product (GDP) for the country at the end of 2023 compared to the previous forecast of 1.6% on the back of higher-than-expected growth in the first quarter.
The central bank also expects that annual headline inflation has already passed its “peak” in the first quarter of this year, when it averaged 7.5%, and then declined until the end of 2023.
However, he argued that inflation would not reach close to 3%, Banxico’s target, until the fourth quarter of 2024.
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
