Inegi

Mexico City., With strength in online sales, groceries and household goods, trade in Mexico rebounded in July 2024, after its previous monthly stumble, although it continued to contract compared to the same month last year, revealed the National Institute of Statistics and Geography (Inegi).

According to the Commercial Business Indicators (Emec), calculated by Inegi, real income from retail sales, the main indicator of household consumption activity, reported a growth of 0.7 percent in July compared to the previous month, after two consecutive declines; meanwhile, in comparison with the seventh month of 2023, sales suffered a contraction of 1.5 percent, the second consecutive one.

According to original figures, retail sales fell 0.6 percent annually in July, affected by a 6.2 percent drop in department stores and self-service stores; while textile products and stationery fell 3.1 and 2.2 percent. On the other side of the coin, online sales rose 33 percent; groceries and food, 5.5 percent; and household goods, 4.3 percent.

The total number of employees in retail companies increased by 0.1 percent on a monthly basis and 0.9 percent on an annual basis, while average real wages fell by 0.4 percent in July compared to June and by 5.5 percent on an annual basis.

For its part, revenue from the supply of goods and services by wholesale trading companies increased by 1.5 percent in July at a monthly rate and with seasonally adjusted figures.

Meanwhile, on an annual basis, real income from the supply of goods and services decreased by 6 percent.

In wholesale trading companies, average real wages fell by 0.2 percent per month. The total number of employees did not register any growth.

Following a setback in the previous month, Mexican consumer confidence improved in August, encouraged by the country’s current economic situation compared to 12 months ago and the expected situation of household members in 12 months compared to the current situation, according to data from the National Institute of Statistics and Geography (INEGI).

Mexican sentiment, measured by the Consumer Confidence Indicator (CCI), stood at 47.6 points in August, which represented an increase of 0.5 points compared to the previous month, and remained at high levels. Four of its five components advanced, while the component of the current economic situation of household members compared to 12 months ago fell 0.1 points.

After Mexican consumer confidence stagnated in April and May, Inegi estimated that confidence regained in June, due to the increase in three of the five main components, and returned to February 2019 levels. However, by the seventh month of the year, their confidence in the situation at home and in the country deteriorated, which will hit their pockets.

By August, confidence increased again, driven by hopes for a better economic situation at home and in the country within 12 months and the current ability of household members to purchase furniture, televisions, washing machines, other household appliances, etc., compared to a year ago.

Thus, the data provided by the National Survey on Consumer Confidence of 2,336 urban households nationwide, prepared jointly by Inegi and the Bank of Mexico (BdeM), reflected that in the eighth month of the year, consumer confidence in Mexico remains at optimistic levels, but with caution, increasing 0.8 points compared to August 2023, as it shows a slowdown in its annual comparison.

The five components of the index showed progress, but the situation expected by households and the country, as well as their purchasing power, was highlighted.