Consumer confidence rose 1.1% in June

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For the third consecutive month, families' perceptions of their economic situation and the country improved last month, due to the dynamism of employment and the downward trend in the economy. 39, inflation, according to the National Survey of Consumer Confidence. ] In June 2018, the consumer confidence index prepared by Inegi and the Bank of Mexico recorded a monthly increase of 1.1% with seasonally adjusted data, accumulating three months in a row on the rise

. Consumer confidence in June is mainly explained by the dynamism of the Mexican labor market, which reflects both the creation of formal jobs and the decline in the unemployment rate, as well as the downward trajectory of the economy. And inflation and its subsequent impact on household consumption, said Francisco Flores, economic analyst for Banorte.

In the future, consumer confidence could present an increase in derivative products from the dissipation of the associated uncertainty and dynamism of the labor market. However, this could be mitigated by the volatility of the Mexican currency, resulting from the renegotiation of the North American Free Trade Agreement (NAFTA), as well as by other external risk factors, added the specialist.

four of the five components of this indicator recorded growth in June. The only one who experienced a decline was that of the opinion on the economic situation of household members at the present time compared to what they had 12 months ago, with a monthly reduction 0.5%.

who assesses the expectation on the economic situation of household members in the 12 months compared to the present, increased by 0.3% compared to the previous month.

The variable that measures consumers' perceptions of the country's economic situation today, compared to the one that prevailed 12 months ago, was similar to last May. For its part, the indicator that captures expectations about the country's economic situation expected in the year from the current situation grew by 3.4% in its monthly comparison.

In addition, the component regarding the opinion on the possibilities in the the present moment by the household members, compared to those of a year ago, to make purchases of durable goods (furniture, television, washing machine, among others) increased by 1.9% at the monthly rate.