Mexico | Demand for goods slowed in April

Summary

The BBVA Research Big Data Consumption Indicator (BDCI) fell (-)2.0% MaM in April, with real figures adjusted for seasonality

Key points

• Key points:
• By components, the deepest slowdown was reported in the goods segment with a drop of (-)3.2%, while spending on services recorded a weak growth of 0.2% during the period.
• Spending on food fell (-)4.5%, probably linked to the increase in prices during April (5.6% YoY, the highest figure since Jan-24, for the food, beverages and tobacco component).
• Within the consumption of services, spending on hotels fell (-)9.7%, while spending on restaurants decreased (-)7.2%; the rest of the segment (as a whole) grew 3.6%, probably driven by higher public spending.
• We consider the boost in government spending on the tertiary sector would continue in the remainder of 2Q24, with less dynamism towards the second half of the year; the slow growth recorded by the industry in 1Q24 (-0.4% QoQ) would extend to the following quarters in a context of weak external demand and lower dynamism in non-residential construction.

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