Global Consumer Confidence Report: June 2024

Mexico: Elections and the strong Peso

Mexicans went to the polls on June 2nd to elect a new president. Our colleagues from global politics analyzed the result in the latest Counter/Consensus newsletter. The week after the elections, consumer sentiment in Mexico continued to slide. Despite the brief volatility, we have been noticing a downward momentum in consumer sentiment since April 2024. In the last two months, the sentiment index dropped six points. 

Since October 2023, Mexican Peso has been appreciating against the U.S. dollar.  Although after the elections, Mexico’s currency quickly depreciated, the peso’s strength is noticeable with an approximately 35% increase against the dollar since its low in 2020. Interest rate differentials, increasing trade with the U.S. and the rise in  nearshoring all support the peso’s appreciation. However, this appreciation may also influence consumer sentiment. Mexico is a large receiver of remittances; the strong peso means that the dollars sent from the U.S. do not go as far as they used to.

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