Sales figures show Mexican economy continues to weaken.
MEXICO CITY Mexico City
Spanish Ciudad de México
City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi -- The slowdown of the Mexican economy was underlined at the end of last week by yet another fall in retail and wholesale sales, with the National Statistics Institute (INEGI INEGI Instituto Nacional de Estadística Geografíca e Informática (Mexico) ) reporting that retailers saw sales rise by a disappointing 0.9% year-on-year in June. Wholesale sales plunged 10.3% in the same period. Although department store and supermarket sales held up, auto sales Auto Sales
The major producers of domestic automobiles report sales monthly. These numbers are seasonally adjusted by the U.S. Department of Commerce and are available to the public one to five business days after the end of each month. dragged the retail figures down, suggesting that consumers are postponing big ticket purchases until the economic picture becomes clearer.
Emy Shayo, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. economist for Bear Stearns, in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of believes these figures reflect the deepening slowdown in the Mexican economy, which she feels most of the market is underestimating. Indeed, retail sales were the worst since August 1999 and wholesale figures saw their biggest decline since March 1996, suggesting that an even bigger decline is yet to come. Although lower interest rates and a strong peso have helped insulate the consumer from the deteriorating economy, economic weakness and falling employment levels are starting to undermine confidence. As these factors continue to deteriorate these effects can only be magnified.
However, the picture is not entirely bleak, as confirmed by the Mexican Retailers Association (Antad) on Monday. Although announcing a fall in same store sales Same Store Sales
A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more.
This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of in its member stores of 1.1% year-on-year in July, Antad said that it does not believe that growth in general consumption is slowing. The group cited the ongoing expansion its retailers were posting, which saw sales rise 5.3% in July, as a sign that the economy is resisting a slowdown, Banco de Mexico's money supply growth was also encouraging, with both provisional M1a and M4a rising in July as the effects of looser monetary policy continue to feed through. Despite these positive signs however, the outlook is uncertain, as the stagnating economy shows little sign of bottoming out.