Mexico: Q3 Consumption drops despite September’s rebound - BBVA

The BBVA Consumer Index grew 2.0% in September on a monthly basis and recovered after a decline of 1.9% in August. In an atypical month with greater mobility and an increase in spending derived from the return to face-to-face teaching at schools, explained Saide Aránzazu Salazar, Principal Economist at BBVA. 

Key Quotes: 

“The moderate dynamism in the ninth month of the year does not compensate for the weakness in spending observed in July and August, and the BBVA Consumption Index fell (-)1.0% in 3Q21.”

“The loss of momentum after the reopening and the spread of the Delta variant appear to have had an effect on private consumption during the third quarter of the year.”

“We estimate that the slow dynamism of consumption will extend towards the end of the year, with an improvement in 2022 due to the greater scope of vaccination and the improvement in expectations for employment and household income.”