Peso greases slide in Mexican consumer confidence
Mexican consumer confidence dropped once again in September, falling 6.8% year-on-year - the strongest annual decline for any month since August 2014 - as economic uncertainty and peso depreciation dimmed consumers' outlook for the economy.
Statistics agency Inegi reported Thursday the seasonally adjusted month-on-month decrease was 1.8% from August to September. Inegi's sub-indicator on confidence for an improved economic situation by September 2017 fell 3.3% m-o-m and 14.8% y-o-y - the worst annual drop in nearly three years for this feature.
Adjusted for seasonality, the annual variation for consumer confidence has been negative since March, while m-o-m the indicator has seen negative movement seven of nine months in 2016.
Non-adjusted consumer confidence reached 84.1 points in September - its lowest level since April 2010.
Speaking to news outlet El Universal, Banorte analyst Alejandro Cervantes suggested the strong depreciation of the peso in the first three weeks of September played a strong part in the drop in consumer confidence.
The weakening peso appears to be having an effect on the consumer outlook on inflation with confidence for stable inflation falling 10.6% y-o-y. In the central bank's latest forecast survey, analysts see continued weakness for the peso.
Multiple factors including the US presidential election, global economic uncertainty and low oil prices helped push the central bank to last week raise the benchmark interest rate 50 basis points to 4.75% to help prop up the currency.
The result defied an earlier forecast from Banamex, which expected "a light rebound" in September, which saw the indicator up 0.3% m-o-m "after the significant drops in July and August, which had a cumulative drop of 3.5%."
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro (Mexico)
Ecuador facing fallout from Mexican embassy raid
Although a police raid on Mexico's embassy in Quito will certainly have diplomatic and political ramifications, it will probably have few economic ...
Mexican construction GDP projected to fall in 2024
Last year's sector GDP hit a record, but lower investments in public works this year will have a negative overall effect, BBVA's chief economist said.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: Puertos de Santander Solar Project
- Current stage:
- Updated:
2 hours ago
- Project: Joca dam
- Current stage:
- Updated:
22 hours ago
- Project: Aroeira 2 wind farm (Aroeira wind complex)
- Current stage:
- Updated:
22 hours ago
- Project: San Luis Industrial Park Combined Cycle Plant (CCC San Luis Río Colorado)
- Current stage:
- Updated:
21 hours ago
- Project: Longitudinal de la Sierra stretch 4
- Current stage:
- Updated:
23 hours ago
- Project: Chirihue photovoltaic park
- Current stage:
- Updated:
22 hours ago
- Project: San Pedro del Norte hydro project
- Current stage:
- Updated:
22 hours ago
- Project: Natural World Energy solar park
- Current stage:
- Updated:
1 day ago
- Project: Rajo Inca
- Current stage:
- Updated:
23 hours ago
- Project: Salamanca combined cycle plant (CCC Salamanca)
- Current stage:
- Updated:
23 hours ago
Other companies
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: MASTER S.A. de Ingeniería y Arquitectura
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Corporación Nacional del Cobre de Chile  (CODELCO)
-
Chile's state-controlled miner Corporación Nacional del Cobre (Codelco), considered the world's largest copper and molybdenum producer, is engaged in the exploration, processing...
- Company: Nexans USA Inc.
- Company: Consorcio Unión
- Company: Constructora Heisecke S.A.  (Constructora Heisecke)
-
Paraguay's Constructora Heisecke S.A. is a construction company focused on the construction of sanitation projects, roads, ports and buildings, for both the private and public s...
- Company: Strabag SpA / Züblin International GmbH Chile Spa  (Strabag / Züblin Chile)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: CDD Construcciones S.A.  (CDD Construcciones)
-
The Paraguayan firm CDD Construcciones S.A., founded in 1984 in Asunción, is engaged in civil, road, sanitation, hydraulic and port infrastructure and engineering projects. In t...