Mexico Macro Monitor: Consumer confidence index records annual and monthly decline

MEXICO - In Brief 04 Apr 2025 by Francisco González

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Consumer confidence in March records annual and monthly decline, reflecting persistent deterioration over the past four months The consumer confidence index for March 2025 fell by -1.3 points compared to the same month last year, marking its third consecutive annual decline. This drop was driven by the sharpest decreases in perceptions of the country’s economic situation compared to 12 months ago (-2.0 points) and the expected household economic situation for the coming year (-1.8 points). Additionally, there were declines in the current household economic situation compared to a year ago (-1.3 points) and the expected economic outlook for the country (-1.6 points). A key component, highly sensitive to the economic cycle, is households’ current ability to purchase durable goods, which remained stagnant compared to the previous year after three consecutive months of decline. A complementary indicator that also declined both monthly and annually is the expected employment situation for the next 12 months, reflecting weakness in the labor market due to slower recent job and income growth, as well as uncertainty stemming from domestic and external factors. GRAPH 1 Consumer confidence index (YoY variation in points) Source: Data FxRates® & INEGI, Analysis GEA Grupo de Economistas y Asociados The monthly deterioration was primarily driven by declining economic expectations—both for household conditions and the country's outlook—amid persistent economic weakness and heightened uncertainty. Month on month, the confidence index fell by -0.3 points, with three of its five components showing declines—the most significant being those related to economic expectations (both for the ...