Mexico | Sluggishness in consumption during August

The BBVA Research Big Data Consumption Indicator grew 2.1% MaM in August, bringing the average annual variation of the first eight months of the year to 9.1%, 2.3 pp below that observed in the same period of the year former.

Key points

• Key points:
• During the January-August period, consumption of goods grew 8.8% on average (YoY), 1.7 pp below the figure recorded in the same period of 2023.
• Spending on services grew 11.2% on average during the first eight months of the year (YoY), 3.8 pp below the figure recorded last year.
• We anticipate that the slowdown in the real wage bill, given the lower job creation in the industrial sector, will extend the slackness of private spending this year.
• We consider that the slowdown in domestic demand in 2H24 will define a low starting point for economic activity in 2025, which faces a gloomy outlook for domestic demand.

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