Mexican Consumer Confidence Rises in October as Inflation Eases Anthony Harrup - Dow Jones
go to original November 6, 2012

MEXICO CITY - Consumer confidence rose in Mexico in October from a year earlier, and also rebounded from September as inflation began to ease.

The National Statistics Institute, or Inegi, said Monday the consumer confidence index was 94.9 last month, up from 90.6 in October 2011. Confidence rose 2.9% in seaosnally adjusted terms from September following two months of declines, as those surveyed were more upbeat about the current economic situation and prospects for the coming year, as well as their ability to buy big-ticket items such as appliances and furniture.

The rise in consumer confidence coincided with an easing in annual inflation, which fell to 4.6% in mid-October from 4.8% at the end of September.

It also followed the creation of more than 110,000 formal private-sector jobs in September, and higher average wage increases in August and September, according to Labor Ministry data.

The rise in confidence comes as Mexico prepares for the second ever "Buen Fin" shopping weekend, when retailers offer special discounts and months of interest-free credit to promote holiday purchases. Retail sales have remained robust this year, up 4.6% through August, as domestic demand contributes to economic growth.

Gross domestic product expanded 4.3% in the first half of 2012, and the Finance Ministry has estimated GDP to have grown 3.3% year-on-year in the third quarter.

Write to Anthony Harrup at anthony.harrup@dowjones.com

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