Consumption may lead Mexican growth next year

Seasonally adjusted retail sales figure in Mexico escalated by 0.3% month on month for October. In annual terms, the year on year retail sales rose by 4.8%. The result is in line with markets' expectation. Since the retail sales are performing well, the economy is expected to post a better growth rate in Q4.

"In the coming months, this sector should lose some of its strength, as ANTAD same-store sales decreased 1.5% m/m sa in real terms in November while car sales decreased 3.2% m/m sa. Nevertheless, this deceleration should be temporary, and we still believe consumption will drive growth in 2016, as employment and inflation should be supportive, although in a modest manner", argues Barclays in a research note.