MexECON Blog

June Consumer Confidence Jumps

Mexico's June consumer confidence index jumped a seasonally-adjusted 3.6%, accelerating from upwardly revised gains of 2.3% in May and 1.3% in April.  On an unadjusted basis, optimism in June was up 7.9% from the same month one year earlier.  According to the report, from the national statistics agency INEGI, the increase in optimism during June reflected improvements in all five subindexes.  The most notable was a 4.9% gain in the subindex on consumers' view of the national economic situation comapared with one year earlier.  Also notable was a 4.3% rise in the subindex on consumers' view of their family's economic situation compared with one year earlier.

Comment:  Consumer optimism in Mexico is not only in a clear upswing, but it is accelerating as well.  The improvement in June is especially important because is suggests that a recent rebound in unemployment has not yet undermined the mood of consumers.  If consumer demand starts to improve in a more meaningful way, it would help buttress the positive impact of higher exports and increased industrial activity, making the Mexican economic rebound more sustainable.

Patrick Fearon, CFA
Vice President, Fund Management

                                        Mexico's Consumer Confidence Index
                                      Seasonally Adjusted, January 2003 = 100
                                                               Source:  INEGI
Consumer Confidence 1006

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