| | |  News Around the Republic of Mexico | April 2009 
Mexico Consumer Confidence Edges Up in March
 Jason Lange & Robert Campbell - Reuters
go to original
Mexico City - Mexican consumer confidence edged up in March from February's record low but remained far below year-ago levels as the country's economy continued to struggle.
The consumer confidence index rose to 79.4 in March from a record low 78.9 in February, the national statistics agency reported on Monday. It stood at 101 in February 2008.
Mexico's economy has been hit hard by a plunge in demand from the United States for its exports. The country sends about 80 percent of its exports to its northern neighbor.
Mexican consumers have curbed spending amid a spate of job losses in export-linked sectors. Government officials are worried that the slide in consumer confidence will deepen the country's economic downturn.
Output plunged by 9.5 percent in January as economic weakness continued to spread into non-export sectors of the economy, including services.
The export sector troubles have led to hundreds of thousands of job losses, sending Mexico's unemployment rate up to its highest since the mid-1990s financial meltdown remembered as the Tequila Crisis.
The drumbeat of gloomy data prompted the finance ministry to cut its view for the economy again last week. The government now expects it to shrink 2.8 percent this year, in line with private sector forecasts. Previously the government had forecast a 1 percent fall.
The government is running a small budget deficit equivalent to 1.8 percent of gross domestic product as it tries to help economic growth and the central bank slashed interest rates last month. But economists believe Mexico will struggle to restart growth until demand from the United States recovers.
(Editing by James Dalgleish) |
|
| |
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us