Private spending in Mexico will extend its slowdown in the second semester in the face of the deterioration of household expectations regarding the performance of the economy in the following months, according to the BBVA Mexico Financial Group.
The area of analysis of the lender added on stage a prolonged slowdown of the real salary mass, derived from the lower dynamism of the industry.
He foresaw that domestic demand will show a modest evolution in the next quarters, with slow growth of consumption and investment.
And the external sector will present greater volatility due to the lack of clarity with respect to the definitive framework of commercial exchange terms with the United States.
A consumption indicator prepared by BBVA Mexico reported a 1.3%drop in the July.
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“The slow dynamism of private consumption is materialized in an environment of high uncertainty (relative to the US trade policy), and less growth of the real salary mass,” said the financial group in a report this Wednesday.
He recalled that Inegi’s consumer confidence indicator spinned seven consecutive falls in July, averaging an annual -1 annual rate variation during those months, against 2.3% observed in the same period of 2024.
To the deterioration of consumers’ expectations with respect to current economic conditions and the next 12 months is added the loss of dynamism of the real salary mass, which recorded an average year -on -year growth of 4.2% between January and July, 3.1 percentage points below the figure observed in the same period of 2024.
He explained that in the consumption by type of establishment, the online spending in July was reduced 6.8% compared to the previous month, and the expenditure on physical stores yielded 0.5%.
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