Mexico | Consumption fell in August with a drop in goods and entertainment

Summary

The BBVA Research Big Data Consumption Indicator (BBVA Research BDCI) reported a real drop of (-)1.5% MoM in August, with seasonally adjusted figures.

Key points

• Key points:
• The goods segment fell (-)2.3% MoM, the biggest drop since December 2020.
• The services segment showed a slight growth of 0.3% MoM, with a drop in entertainment (-9.9%) and modest growth in hotels (1.3%) and restaurants (1.2%).
• Spending in physical stores fell (-)0.9%, while spending in online establishments contracted (-)7.5%.
• Cumulative spending for July-August shows a real drop of (-)2.1% compared to the first two months of 2Q22, pointing to a rapid slowdown in private consumption in 3Q22.
• The weakness in consumption would extend into the rest of the year and deeper in 2023, in a context of higher prices and high interest rates.

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