Mexico | Consumption stagnates in September with a drop in services and food

Summary

The BBVA Research Big Data Consumption Indicator (BBVA Research BDCI) reported zero growth in September (MoM), extending the slow dynamism it has shown since the middle of the year, with real figures adjusted for seasonality.

Key points

• Key points:
• The spending performance was negatively affected by the fall in the services sector, given the (-)7.7% contraction in the hotel component and the (-)7.1% drop in the restaurant segment, pointing to a retraction in consumption of non-essential services, given the environment of high inflation and higher interest rates.
• Within the goods segment, the food component fell (-)0.8%, its third negative reading so far this year, in a period which has registered a rapid growth in the price of processed foods.
• Gasoline spending as a proxy for mobility showed zero growth during the period, extending the slowdown observed since May.
• We estimate the slowdown in demand will materialize more deeply next year; downward revision to our 2023 GDP growth forecast to 0.6% (1.6% previously).

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