Private consumption increased by 0.1% in June: Inegi

After two consecutive declines, private consumption in Mexico registered a monthly advance in June, supported by spending on national goods and services, and slowed its advance compared to June of last year, reported the National Institute of Statistics and Geography (Inegi).

This morning, Inegi published the Monthly Indicator of Private Consumption (IMCP), which assessed that spending by companies, families and individuals in Mexico showed a monthly increase of 0.1 percent in June, after two consecutive months of reporting declines. However, it failed to recover the decline of both previous readings.

According to Inegi, for April 2024, the IMPC stood at 111 points, practically at the same level as the previous two months, which represented an increase in private consumption in the domestic market of 2.5 percent compared to the sixth month of 2023, far from the annual rate of March of 5.8 percent with seasonally adjusted figures, to make the periods more comparable.

The IMPC data was slightly higher than what the Timely Indicator of Private Consumption (IOCP) calculated a few weeks ago, where it estimated that private consumption in Mexico maintained its monthly contraction during June, pointing to a strong annual slowdown.

The IOCP forecast that the Monthly Indicator of Private Consumption (IMCP) fell 0.1 percent in June compared to May.

By component, in the sixth month of 2024 and with seasonally adjusted data to make the periods more comparable, consumption of goods and services of national origin increased by 0.3 percent monthly and consumption of goods of imported origin fell by 1.2 percent, its third consecutive month of decline.

At an annual rate and with seasonally adjusted series, private consumption increased 2.5 percent in June of this year. Within it, spending on imported goods increased 10.1 percent and on national goods and services increased 1.4 percent (goods increased 2 percent and services increased 0.8 percent).

Private consumption slowed down during the last two months of 2023, from an increase of 5.8 percent. Therefore, at the start of the second quarter of this year, it slowed down, in line with a more moderate performance of the Mexican economy.