Barclays: Mexico's Retail Sector Stages a Comeback John Kimelman - Barrons.com
go to original October 22, 2012

Analysts at Barclays have been poring over Mexico’s retail sales numbers for August and the results look good.

According to Barclays, August retail sales gained 1.1% over the previous month on a seasonably-adjusted basis, which almost counterbalances the previous month’s fall of 1.3% on a month-to-month basis.

In annual terms, retail sales grew 4.8% year-over-year, higher than Barclays’ above-consensus forecast of 3.7%,

“With this reading, the retail sector is maintaining a solid trend,” Barclays writes.

“Taking a look at the composition of sales, seven of the eight components displayed monthly increases, and only hardware purchases declined. Most of the components recovered from the previous month’s declines, such as apparel, supermarket and departmental stores and paper and entertainment sales,” Barclays wrote.

“On the other hand, vehicles sales continued growing, although at a softer rate, but still accumulating six consecutive monthly increases. However, this component should continue to decelerate, as car sales declined in September.

The report pointed out that since August was the weakest month for industrial output, “today’s retail reading confirms the domestic market will likely continue providing support for growth, counterbalancing the deceleration in the industrial sector due to weak external demand.”

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