Mexico | Consumption recovers its May level, boosted by spending on food and health

Summary

The BBVA Research Big Data Consumption Indicator grew 1.2% MaM in October, taking the average monthly variation of the last three months to 0.0% (vs -0.5% in September) , with real figures adjusted for seasonality.

Key points

• Key points:
• Consumption was positively impacted by the dynamism of the food segment, which registered a monthly variation of 4.0%, and by the component of health care goods, which grew 3.2% MoM.
• Although spending on restaurants grew 1.7%, after the September fall, the hotel segment stagnated during the period, and spending on entertainment services contracted (-) 2.0%.
• The mixed evolution of spending suggests a slow growth of non-essential services, and higher consumption of non-durable goods, in a context of persistently high prices and a tighter monetary policy, with negative effect on household financing.
• Although recent 3Q22 GDP data point to an extension of the dynamism of the economy during that period, going forward we estimate a slowdown in the components of internal and external demand, maintaining our GDP growth estimate at 0.6% for 2023.

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