Mexico | Consumption fell (-)1.5% in May with decline of the tourism sector

Summary

The BBVA Research Big Data Consumption Indicator (ICBD BBVA Research) slows down amid the fall in the tourism sector after the high dynamism registered in April triggered by the Easter holiday period.

Key points

• Key points:
• The loss of dynamism in the tourism sector together with the decline of the goods segment (-1.0%) suggest that the rapid growth in private consumption in the first months of the year was temporary and associated with higher spending during holidays in Mexico and USA.
• The May weak data points to a slowdown in private consumption, as households face the persistence of higher prices in a more deteriorated labor context, as reflected in the recent data from the INEGI critical employment conditions indicator.
• Going forward, we anticipate less dynamism in spending amid high inflation and tight monetary policy, with an effect on households’ disposable income and debt capacity.

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