Mexican retail sales jumped by a seasonally-adjusted 1.8% in
June, rebounding strongly from their revised 0.1% decline in May
and marking their best monthly increase since last November.
Without seasonal adjustments, but stripping out price changes,
sales in June were up 5.6% from the same month one year
earlier. The retail subsectors posting the best
year-over-year increases in June were paper and personal products;
clothing and footwear; food and beverages; department stores; and
metal and glass products. The report was released today by
INEGI, the official statistics agency.
Comment: The rebound in June
retail activity is consistent with other recent data that suggests
Mexico is already rebounding from the soft spot it hit during the
spring, when the European debt crisis flared once again and U.S.
economic growth began to slow. Other recent upside surprises
have included a jump in industrial production during June and a
surge in consumer confidence in July. The problems abroad
still have the potential to trip up Mexico, but for the moment, the
country is cruising on the strength of both rising exports and
healthy domestic demand.
Patrick Fearon, CFA
Vice President, Fund Management
Mexican Retail Sales
Seasonally Adjusted, 2003 = 100