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Mexico Confidence Slips Again in October as Households and Firms Turn Cautious

A pickup in manufacturing orders contrasts with a Q3 contraction, reinforcing expectations of restrained spending and investment.

Overview

  • Mexico’s Consumer Confidence Index fell to 46.1 in October, down 0.3 points month over month and 3.2 year over year, marking 10 straight annual declines.
  • The steepest monthly drops were in expectations for the national economy in 12 months (-0.8 points) and the current ability to buy durable goods (-0.6).
  • The Global Business Confidence gauge (IGOEC) slid to 48.6, extending an 18‑month run of annual deterioration and staying below the 50 neutral mark for an eighth month.
  • The Manufacturing Orders Index (IPM) rose 3.8% from September and 3.6% year over year, signaling some demand resilience despite weaker sentiment.
  • Flash GDP indicated a 0.3% contraction in the third quarter both quarter on quarter and year on year, and analysts point to trade and investment uncertainty as reasons for continued caution on big‑ticket outlays.