Resurgence of Private Consumption in Mexico: June Shows Growth, According to Inegi

According to the National Institute of Statistics and Geography (INEGI), private consumption in Mexico resumed growth in June 2023, after two months of decline.

The INEGI’s monthly report on economic activity showed that private consumption grew by 0.3% in June, after falling by 0.1% in May and 0.4% in April. The June figure was the first positive reading since February.

The growth in private consumption was driven by a number of factors, including rising wages, lower unemployment, and increased government spending. Wages in Mexico rose by 7.5% in the first half of 2023, while unemployment fell to 3.2% in June. The government also increased spending on infrastructure and social programs in the first half of the year.

The growth in private consumption is a positive sign for the Mexican economy. It suggests that households are feeling more confident about their finances and are willing to spend more. This could help to boost economic growth in the second half of the year.

However, there are some risks to the outlook for private consumption. These include rising inflation, which could erode household purchasing power, and a potential slowdown in economic growth. The Mexican economy grew by 1.5% in the first half of 2023, and it is expected to grow by around 2% in the second half of the year.

Overall, the growth in private consumption in June is a positive sign for the Mexican economy. However, there are some risks to the outlook, and it will be important to monitor these risks in the coming months.