Monday, On the Margin
Investment; consumption; banks; SOFIPOs; mobile banking; manufacturing; tourism and pension funds.
Investment
During October, investment in fixed assets remained virtually flat on a sequential basis but registered a 4.5% annual decline, according to seasonally adjusted figures.
INEGI data shows that most of the decline in the country’s investment was due to strong contractions in construction (-12% YoY). On the flip side, investment in imported machinery and equipment hit record highs, rising 4.3% YoY.
Despite the contraction at the end of this year, since 2022, the upward trend in INEGI’s Fixed Capital Formation Index has been remarkable. This index essentially tracks the behavior of the public and private sectors in purchasing fixed assets, such as construction, machinery, and equipment.
Consumption
On the consumer side, we are beginning to see signs of weakening consumption patterns among Mexican households. The country’s consumption index dipped 0.7% sequentially in October, based on seasonally adjusted figures.
On a 12-month rolling basis, consumption grew by 3.6% YoY, with imported goods and services accounting for most of the growth, rising an impressive 17% YoY.
Since the end of 2023, the consumption of imported goods in Mexico has consistently delivered double-digit annual growth rates.
Banks
The commercial banking sector's loan portfolio surged to $7.6 trillion pesos in 2024, representing an 11.5% year-over-year (YoY) increase. Delinquency rates (NPL-adjusted ratios) remained stable at 4.2%, up slightly by 10 basis points (bps) YoY.