The decline in consumer confidence in Mexico affects household spending and savings.

Consumer confidence in Mexico has been significantly affected during the month of July, marking the third consecutive decline in this indicator. According to data provided by the National Institute of Statistics and Geography (INEGI) and the Bank of Mexico, the Consumer Confidence Index (CCI) stood at 46.9 points, representing a decrease of 0.4 points compared to June. This trend aligns with concerns about the economic slowdown the country is facing. The five components that constitute the CCI have shown a widespread decline. One of the most concerning aspects is the perception of the country's economic situation over the next twelve months, which was affected by a setback of 0.7 points. This data reflects consumers' worries about how the Mexican economy might evolve, which in turn influences their spending and saving capacity. The current economic situation of households has also been a topic of concern. In particular, both the assessment of the economic situation of household members and the comparison of the current economic reality of the country with that of a year ago recorded a decrease of 0.4 points. This suggests that families are feeling the burden of economic uncertainty, which could limit their willingness to make significant purchases, such as furniture or appliances. The ability to acquire durable goods has been affected, as the component that evaluates the willingness to buy furniture, appliances, and other items also fell by 0.3 points. This is particularly relevant in a context where consumption has become a crucial driver for economic growth. The reduction in consumer confidence could have repercussions on economic activity in the second half of the year. In addition to the deterioration in overall confidence, an analysis of ten complementary indicators shows that most of these have also shown significant declines. Among them, the reduction in current savings possibilities stands out, which fell by 2.9 points. This decrease highlights the financial pressure that many families are facing and their inability to set aside part of their income for the future. Another concerning indicator is the intention to build or remodel a house in the next two years, which dropped by 2.3 points. This decline not only reflects a slowdown in housing investment but may also impact the dynamism of the construction sector, which is vital for the national economy. The outlook for savings in the coming year also presents a gloomy picture, with a decrease of 1.8 points in the economic conditions for doing so. This suggests that many consumers anticipate a difficult economic environment in the future, which could lead to greater caution and cuts in their spending. On the other hand, some indicators have shown slight improvements, such as the employment situation in the country for the next twelve months, which advanced by 0.5 points. However, this increase does not seem sufficient to counteract the widespread pessimism among consumers. Additionally, the assessment of personal economic situations at this moment, compared to a year ago, saw a slight increase of 0.1 points, suggesting that some individuals may have a positive perception at a personal level, despite the general context. Banco Base has noted that the deterioration of consumer confidence is consistent with the economic slowdown being observed and the risks it poses for growth in the near future. The economic connection between Mexico and the United States means that any slowdown in the neighboring country could further deepen this negative trend in Mexican consumer confidence. Analyzing this data makes it clear that consumer confidence in Mexico faces significant challenges. The combination of declines in economic perception, reduced savings possibilities, and uncertainty about the future is creating an environment unfavorable for consumption. Authorities and analysts must remain attentive to this situation, as consumer confidence is a key indicator for the country's economic development.