Retail sales rise 0.7% and reach a new maximum in October

In October, retail sales revenue in Mexico resumed its advance and grew 0.7% per month, marking its best pace since last February (+1%) and reaching a new all-time high, according to data released this Tuesday by the Institute National Geography and Statistics (Inegi).

The growth –preceded by a decrease of 0.2% in September–, reflected the advance in 10 of the 22 subcategories of merchandise sales that the Inegi measures in its Monthly Survey on Commercial Companies (EMEC).

The five items with the highest increase were automobiles (+8%), health care (+3.2%), footwear (+2.6%), textile products excluding clothing (+1.5%), and furniture and household goods (+ 1.4 percent). The lines of greatest weakness were motorcycles (-5.4%), beverages, ice and tobacco (-3.7%), articles for recreation (-2.9%), stationery, books and magazines (-2.9%) and department stores (-2.8 percent).

“The results of the commercial companies in the tenth month of the year allow some respite on the margin of the local economic situation, as they show that what has been the main engine of growth during 2022 will not stop its inertia suddenly,” said Marcos. Arias, an analyst at the Monex Financial Group.

But he anticipated that “it is difficult for the results to remain constant given the adverse conditions of monetary policy and wear and tear on inflation, which is why we believe that in 2023 there will be a notable slowdown in the items that today drive the advance of the general index.”

empresas@eleconomista.mx