May Political and Economic Overview

MEXICO - Report 13 Jun 2013 by Mauricio Gonzalez, Ernesto Cervera and Carlos Noriega

Executive Summary

The setback in headline inflation sentiment index can largely be explained by increasing erosion of consumer expectations. That signals that consumer spending will stay weak through Q2.Flagging consumer hopes for household finances, and the broader economy, will evolve over the next year.

Last week's measures of consumer and producer sentiment were mixed. The Consumer Confidence Index for May fell 1.2%, only the second time in the past 17 months that the index fell in y/y terms.Producer sentiment was more upbeat than consumer sentiment in May, with most c...

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