Mexico | Consumption regains dynamism in May driven by spending on services

Summary

The BBVA Research Big Data Consumption Indicator reported an increase of 2.7% MaM in May, with real figures adjusted for seasonality; by components, the largest increase was recorded in the services segment, with a variation of 4.0%, while spending on goods grew 2.4%, after the contraction registered the previous month.

Key points

• Key points:
• The rapid increase in the consumption of services is recorded after two months of weakness, probably driven by the favorable effect of higher public spending on the tertiary sector.
• Within the consumption of services, the segments associated with tourism showed positive performance; spending in hotels grew 3.7%, while consumption in restaurants registered a 2.2% MoM.
• Regarding consumption by type of establishment, spending in physical stores grew 2.4%, the best figure since February, while online spending stagnated (0.0% MaM); the null growth in online consumption represents the lowest figure since Dec-23.
• We consider the advancement of social program transfers during 2Q24 will represent a positive effect on private consumption, while the accumulated gains in real salary and real wage bill will prevent contractions in this component of demand in the second half of the year.

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