Consumer confidence continues to recover. advanced by 1.1% in June

Mexican household confidence continues to recover. In June, the Consumer Confidence Index (ICC) rose by three months, according to the report released by the National Institute of Statistics and Geography (Inegi).

The index, prepared jointly by Inegi and the Bank of Mexico recorded an increase of 1.1% over the previous month. Since April, the index has shown progress, after four months of decline

In the report, we can see that in the monthly comparison, the five components that make up the ICC, only the one that refers to the current economic situation decreased by 0.5%. On the other hand, the economic situation of the country expected increased by 3.4%; one of the current opportunities to make purchases grew by 1.9%, and the economic situation of the members of the house expected within 12 months increased by 0.3%. However, the element that refers to the economic situation of the country today has not varied.

According to an Invex report, "the deterioration in perception of the current household situation hampers discretionary spending decisions, down from the previous month, coincide with a lower savings capacity On the other hand, the possibility of buying durable goods has presented a monthly advance, although there is a deterioration of plans for the purchase of cars and housing. "[19659002HeaddsthatthedynamismofthelabormarketandtheexpectationofapossiblechangeThegovernmentcouldalsoinfluenceandsupporttheexpectationsofMexicanhouseholdsintheeconomyHoweverthepriceofgasolineandthecostofdebtweighonthecurrentperceptionofnationaleconomies

In annual comparison, consumer confidence rose 2.9%, resulting in 11 consecutive months of August last year, when the index was 88.5 points.

Confidence in Employment

In the complementary indices that make up the ICC, which refers to the employment situation in the next 12 months, improved by 1, 7% in monthly comparison, while in annual comparison it grew by 10.6%

Similarly, the index that refers to the personal economic situation expected within 12 months increases by 0.5 % monthly and 0.9% annually. ] At the other extreme, the index that relates to the purchase, construction or modeling of a home over the next two years at 2.1% per month it's deteriorated, while it's decreased by 10.4% year-over-year. Similarly, the current economic situation deteriorated by 1.8% month by month, but grew by 1.2% at the annual rate, while economic opportunities to go on vacation decreased by 1.7% per month and 2.0% per year and current opportunities to purchase clothing, footwear and food decreased by 1.7% per month and 0.6% per year

Marginal progress in coming months

Although the outcome of the electoral process a few days ago may help to anticipate the popular economy, "the analyst Invex warns that trade tensions with the United States and the renegotiation of The North American Free Trade Agreement (NAFTA) could affect confidence.

In this sense, Francisco Flores, economist at Banorte, this trust will show marginal growth in the following months.

" We believe that consumer confidence may show an increase in dissipation of the associated uncertainty and dynamism of the labor market. However, this could be mitigated by the volatility of the Mexican currency, derived from the renegotiation of NAFTA as well as by other external risk factors. "

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