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Why Mexico’s Consumer Confidence Fell Slightly in June

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Consumer confidence in Mexico

Consumer confidence in Mexico (EWW) seems have been hit by increasing prices in June 2017. Consumer confidence in the country (UMX) fell to 84.4 in June, compared to 85.1 in May.

The surge in gasoline prices in June seems to have affected the consumer sentiment, which has otherwise been improving over the last few months. Also, as NAFTA-related (North American Free Trade Agreement) talks approach, the markets could be getting anxious to understand the outcome of the negotiations. Let’s look at consumer confidence in Mexico over the last year.

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Consumer confidence in June 2017

Mexico’s consumer confidence fell in June 2017. Let’s take a look at the data:

  • The country’s perception of the current economic situation fell to 75.2 in June 2017 from 77.3 in May 2017.
  • People’s intentions to purchase durable goods fell to 80.5 in June from 81.4 in May.
  • The current financial position fell to 97.4 in June, compared to 97.6 in May.
  • Expectations regarding future employment fell to 96.1 in June from 96.9 in May.
  • Expectations about the future financial position fell to 96.7 in June, compared to 97.2 in May.
  • Expectations about the future economic situation of the country fell to 74.9 in June from 76.2 in May.

Improved trade outlook

Consumer confidence in Mexico (EWW) gained strength as NAFTA-related fears faded in June. The relatively moderate stance adopted by President Donald Trump on NAFTA has improved the business confidence in Mexico (DBMX).

Meanwhile, the Mexican government is also making increased efforts to build new trade relations globally. Mexico (UMX) has high expectations for its trade relations with China (FXI) as the largest emerging (EEM) market participant slowly opens its trade barriers.

NAFTA-related negotiations between the United States (SPY), Mexico (EWW), and Canada (EWC) are expected to begin in August 2017.

Let’s look at auto production in Mexico in our next article.

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