Monday, May 20, 2024

Consumer confidence index shows January increase

Consumer confidence continues an upward trend, increasing in January compared to both to the previous month and the level recorded a year earlier. 

According to data published by the national statistics agency INEGI on Friday, Mexico’s consumer confidence index (ICC) rose 1.5 points from December 2022, to 44.2 points. The ICC increased 1.2 points compared to January 2021. 

The ICC is based on results from a nationwide survey on consumer spending plans and economic expectations, conducted in conjunction with Mexico’s central bank during the first 20 days of every month. It is based on a sample of 2,336 households across Mexico’s 32 states. 

Despite the registered growth, a score below 50 is considered to show pessimism among consumers. Five sub-indexes are weighted to compile the total score. 

Compared to last year, four of the sub-indexes registered an increase.

The indicator measuring the most growth was how respondents perceive the country’s economic situation compared to the past 12 months, with an increase of 2.3 points for a total score of 40.0. 

Food on sale at a market
Rising food prices have squeezed Mexican household budgets, but consumers’ economic outlook shows an upward trend.(Mario Jasso / Cuartoscuro.com)

Respondents also have more confidence in their capacity to purchase furniture, a television, a washing machine or other home appliances, with a score 2.1 points higher than last year. However, the total sub-index score remains low, at only 26.3 points. 

When asked about their current economic situation compared to a year earlier, respondents’ confidence grew by 0.6 points, to 48.7. The expected household economic situation over the next 12 months registered the highest total score, reaching 57.0, an increase of 0.6 points. 

The only sub-index that declined since last year was that which measures optimism about the country’s overall economic outlook over the next 12 months. That indicator fell 0.2 points, to 48.3. 

Compared to the month before, none of the five sub-indexes registered a decrease. The improvement from December was driven primarily by respondents’ confidence in their capacity to make a significant household purchase, with an increase of 1.8 points. 

The indicator that saw the least growth was perception of respondents’ household economic situation compared to 12 months previously, with a growth of just 0.6 points. 

The month-over-month improvement occurred despite continued inflationary pressures

Mexico News Daily

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