MexECON Blog

February Retail Sales Rise 0.2 Percent

Mexico's February retail sales rose by a seasonally-adjusted 0.2%, after a 0.9% gain in January.  Without seasonal adjustments, but stripping out the impact of price increases, February's sales were up a very healthy 7.6% from the same month one year earlier.  The retail subsectors posting the strongest year-over-year increases in February included clothing and footwear; department stores; metal and glass products; motor vehicles, fuels, and lubricants; and paper and personal products.  The subsectors with the weakest year-over-year increases were domestic appliances, food and beverages, and healthcare.  The report was released today by INEGI, the official statistics agency.

Comment:  Against the backdrop of growing U.S. demand, rising industrial activity, and a gradually improving labor market, Mexican retail sales are likely to continue on their current uptrend.  Consumption spending will likely remain a key source of Mexican economic growth, as it has been for much of the last couple of years.  The key risks are that a renewed flare-up in Europe's sovereign debt crisis could undermine global confidence again, while rising prices for energy and food could force consumers to pull back. 

Patrick Fearon, CFA
Vice President, Fund Management

                                                Mexican Retail Sales
                                     Seasonally Adjusted, 2003 = 100
                                                    Source:  INEGI
Retail Sales 1202

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