Consumer confidence at lowest point since 2023 as growth outlook dims

Consumer confidence fell 2.4 points in December compared to the same month in 2024, according to estimates published by Mexico’s national statistics agency INEGI, the 12th consecutive month with negative annualized results.

This was the first negative December since 2022 (-1.5 points), although the Consumer Confidence Index (ICC) showed a slight rebound from the November survey (-3 points), ending three straight negative month-to-month performances.

The ICC — prepared jointly by INEGI and the Central Bank (Banxico) by surveying 2,336 urban households nationwide — measures households’ perceptions of their current and future economic situation, as well as that of the country.

Of the five components measured by INEGI, the annualized index showed respondents indicated greater confidence in only one: expectations for purchasing furniture and appliances. This was attributed to perceived improvements in Mexico’s economic situation, particularly with regard to inflation.

The biggest drop was observed in the component asking participants their perception of the country’s economic prospects over the next 12 months. Here, the ICC recorded a decline of 6.9 points compared to December 2024.

The other three components also landed in negative territory:

— the perception of the country’s current economic situation: -4.3 points.

— the perception of your own economic situation: -0.1 points

— the perception of your own economic situation over the next 12 months: -1.2 points

The year-end ICC results accurately reflect a year in which the Mexican economy navigated uncertainty amid changes, particularly with regard to foreign policies and economic pressures from abroad.

Such challenges affected the domestic economy, which is expected to record sluggish growth in 2025. The Organization for Economic Cooperation and Development projects Mexico’s 2025 GDP to come in at 0.7%, while Banxico forecasts GDP growth of just 0.3%.

With the labor market cooling, weak economic growth and a slowdown in remittances — a significant source of income for Mexican families — analysts will focus attention on the evolution of these macroeconomic indicators, as well as the trajectory of inflation in the coming months.

With reports from El Economista and La Jornada

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