MexECON Blog

September Retail Sales Rise 1.0 Percent

Mexico's September retail sales jumped 1.0% on a seasonally-adjusted basis, marking their best increase since April.  Sales in August were revised upward to show a 0.1% gain, instead of the modest decline reported initially.  Without seasonal adjustments, but stripping out price increases, September's sales were up 4.7% from the same month one year earlier.  Seven of the nine retail subsectors posted year-over-year sales gains in September, including metal and glass products; healthcare; motor vehicles, fuels, and lubricants; department stores; paper and personal products; textiles, clothing, and footwear; and domestic appliances, computers, and interior decorating goods.  The report was released by INEGI, the official statistics agency.

Comment:  The jump in Mexican retail sales during September probably stemmed in large part from a retreat in unemployment and easing inflation pressures that month.  Those factors apparently offset September's decline in consumer confidence.  The acceleration in retail activity provides added evidence of the momentum in Mexico's domestic demand.  Mexico continues to face important risks from global financial turbulence and slowing growth in the key developed economies, and Mexican economic growth could well slow or even turn negative in the coming months.  However, the momentum in consumption spending and investment will likely cushion the blow. 

Patrick Fearon, CFA
Vice President, Fund Management

                                                    Mexican Retail Sales
                                         Seasonally Adjusted, 2003 = 100
                                                        Source:  IENGI
Retail Sales 1109

0 comment(s) for “September Retail Sales Rise 1.0 Percent”

    Leave a Comment