MexECON Blog

April Consumer Confidence Rises

According to a new report from INEGI (the national statistics agency), Mexico's April consumer confidence index rose a seasonally adjusted 1.1%.  The rise was more than enough to reverse the revised 0.7% decline in March and the flat reading in February.  On a non-adjusted basis, the index was up 0.5% from the same month one year earlier.  Each of the five subindexes posted an increase in April, with the strongest increases coming in the subindexes that track the survey respondents' views of the current situation in their household and in the country as a whole.

Comment:  Consumer optimism in Mexico has stabilized and is now on a modest upward path (see chart below).  The rise in optimism is consistent with the recent improvement in Mexico's labor market.  The country's unemployment rate has been falling since mid-2009, and if exports and industrial activity continue to rebound, the labor market is likely to keep improving.  A stronger labor market and improved consumer optimism are important because they should help make Mexico's on-going economic recovery more resilient.

Patrick Fearon, CFA
Vice President, Fund Management

                                   Mexico's Consumer Confidence Index
                                       Seasonally Adjusted, 2003=100
                                                       Source:  INEGI
Consumer Confidence 1004 B

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