Mexico’s economy likely to expand by 0.4% q/q in Q4

Retail sales in Mexico recorded a fall of 1.1% m/m sa in September as a result of a strong decline in food and hardware sales. The retail sales posted an annual growth of 4.9% y/y during the same month.

Since April 2015, this is the first monthly decline in retail sector observed. The sector is expected to perform well in next month if the job creation process continues under stable inflation. In Q3, total jobs inched up by 2.6% y/y.

The economy is expected to post 0.4% q/q sa in Q4 after the 0.8% q/q sa growth noticed in Q3, says Barclays.