EconomyConsumer confidence falls for the fourth month in a...

Consumer confidence falls for the fourth month in a row

In August, the confidence of Mexican consumers decreased, in all its aspects and, especially, in the perception of the possibility of buying durable and semi-durable goods.

Four of the five items that make up the Consumer Confidence Indicator decreased during August, compared to July, showing a global drop of 0.4 monthly points, according to the National Institute of Statistics and Geography.

It is the fourth consecutive month with a fall in the index prepared by the Inegi and the Bank of Mexico . In April, the ICC reached 44 points and, four months later, it stands at the level of 40.9 points.

The only component that advanced was the one that measures the expected economic situation of household members within 12 months, compared to the current one, with a growth of 0.4 monthly points . Although it shows a drop of 2.8 points compared to August 2021.

The component that measures the perception of the current economic situation of households, compared to what they had 12 months ago fell 0.9 points per month.

The component that measures the perception about the economic situation of the country today, compared to that of 12 months ago, decreased 0.6 monthly points and 1.7 points compared to August 2021.

Expectations about the future economic situation of the country also fell, 0.2 points, presenting a fall of 5.3 points in its annual comparison.

But the most pronounced drop was in the component that measures the possibilities of households, compared to those of a year ago, to buy furniture, televisions, washing machines or other electrical appliances, with a monthly reduction of 1.1 points.

Less confidence to build a house

Within the complementary indicators of the index, it can be seen that the confidence of Mexicans to build a house in the next 2 years decreased again during August, now with a drop of 2.2 monthly points and 2.4 in its annual comparison. To stay at a level of 14 points that indicates pessimism.

Confidence in planning to buy a new or used car in the next 2 years also fell. And, regarding inflation, the confidence indicator on the behavior of prices in the next 12 months also deteriorated, falling 0.3 monthly points and 6.4 annual points.

A bad shopping experience can affect your business results

Changing consumer behavior forces brands to be more innovative and empathetic. Otherwise, the cost is very high for them.

What is needed today are more voices that inspire confidence

How will companies and brands sell when advertising budgets have been slashed and consumers and customers want to spend less right now? asks Guido Gaona.

Consumer confidence falls again in July

Mexicans expect higher price increases and less ability to save and buy durable goods. It is the third consecutive month with a deterioration in this indicator, according to the Inegi.