Mexico | Consumption grew 0.5% in January, with dynamism in the services sector

Summary

By components, spending on services grew 1.5% MaM, while the goods segment registered null variation during the period (0.0%)

Key points

• Key points:
• Within the services component, spending on hotels showed the greatest dynamism, reporting a monthly variation of 5.5%, the highest since January 2023, while spending on restaurants grew 1.9% during the period.
• Going forward, we anticipate that private consumption by spending segments will achieve a better balance, considering that services consumption already exceeds its pre-pandemic level (by 1.2%).
• Among the factors that have given relative resilience to consumption are the good performance of the real wage bill and the households deposits balance gap with respect to its pre-pandemic trend (4.5% as of December).
• We estimate that private consumption will contribute positively to GDP growth during 2024; however, we anticipate that weakness in other sectors of the economy (such as industry and associated services) represent a downward bias on the strength of domestic demand in 2024.

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