MexECON Blog

January Retail Sales Jump 2.1 Percent

Mexican retail sales jumped by a seasonally-adjusted 2.1% in January, erasing their revised 0.8% decline in December and marking their strongest increase since November 2013.  On an unadjusted, constant-price basis, sales in January were up a healthy 4.7% from the same month one year earlier.  The retail subsectors posting the strongest year-over-year sales gains in January were on-line and catalogs; food, beverages, and tobacco; and clothing, footwear, and textile goods.  The only retail subsector to post a year-over-year sales decline in January was home décor, domestic appliances, and computers.

At the wholesale level, January sales edged up 0.1%, after a rise of 0.7% in December.  Wholesale receipts in January were up 2.2% year-over-year.

The report was released today by INEGI, the official statistics agency.

Comment:  As I have been expecting, it seems that the sharp decline in Mexican unemployment since last summer is finally boosting consumer demand.  Joblessness in Mexico fell from 5.1% last July to just 4.4% in December and January, and consumer confidence has been on the rise.  It should therefore be no surprise that retail activity is on the upswing.  Of course, the recent numbers may have been skewed by the difficulty of seasonal adjustments around the holidays.  Nevertheless, retail sales still seem to have regained their upward momentum in recent months.  That should help support Mexican economic growth in the coming months.

Patrick Fearon, CFA
Vice President, Fund Management

Retail Sales 1501Wholesale Sales 1501

0 comment(s) for “January Retail Sales Jump 2.1 Percent”

    Leave a Comment