Consumer Confidence in Mexico boosted to levels not seen in 10 years after the presidential election, according to data from the National Institute of Statistics and Geography (Inegi). The Consumer Confidence Index (ICC) reported a monthly growth of 14.8% in July. This result represented the largest monthly increase since the Inegi has records.
The only similar antecedent in terms of percentage was in February 2017, although on that occasion the observed monthly variation of 13.09% was a consequence of the strong decrease of 17.48% recorded during the previous month, an effect derived from the 'gasolinazos' or gas prices hikes, that caused a lot of uncertainty among Mexican consumers at the beginning of last year.
According to Julio Santaella, president of Inegi, "the strong increase in the Consumer Confidence Index in July returned it to levels not observed for ten years."
The index was in the seventh month of the year at 101.7 points, a level not seen since March 2008, when it reached 102.3 points.
The National Survey on Consumer Confidence (ENCO) is prepared jointly by Inegi and the Bank of Mexico, and is carried out during the first twenty days of each month, which implies that most of those surveyed already considered the results of the presidential election held on July 1.
Every single one of the five variables that make up the ICC showed upward results.
Although all the components increased, there’s one in particular that stands out. The one that measures the perception that Mexican consumers have of the country's economic situation within the next year, which reflected a monthly growth of 31.9%. Never in the history of the indicator had there been an increase in that level.
Regarding the economic conditions expected for next year by members of a household, confidence also rose by 11.3% compared to June.
All this confidence also influenced the current possibilities of making purchases of furniture, televisions, washing machines and other household appliances, reflecting an upward variation of 13%.
Regarding the economic situation of the current country compared to that of 12 months ago, Mexicans gave a 'boost' of confidence of 11.4%. This perception did not register a 'mood' so high since January 2016.
The indicator that showed the most moderate increase in the monthly report was the one that assesses the current economic situation of the members of the household compared to the one they had 12 months ago, reflecting a 'modest' increase of 5% with respect to the month previous.
In the annual variation, consumer confidence showed an increase of 17.8%, its highest growth in the last six months.