Mexican consumer sentiment likely to have remained almost unchanged in June

Mexico’s consumer sentiment index is likely to have increased in June to 92.2 from May’s 90.9, noted Societe General in a research report. But on a seasonally adjusted basis, the sentiment index is expected to have remained almost the same.

The consumer confidence index continues to be close to its six-month average in spite of the jobless rate dropping by almost 0.8 percentage points and retail sales continuing to show solid trends in private consumption. The index’s details indicates that most the weakness is because of the current and expected business conditions segments that signals at an imminent deceleration of the economy.

The Mexican economy is likely to slow in the year ahead. However, with the improvement in unemployment statistics and the persistent low level of inflation, consumer sentiment is likely to be broadly unchanged in the near term, according to Societe Generale.