Mexico

U.S. Consumer Sentiment Improves in September, While Confidence Weakens in Canada and Mexico

Consumer sentiment across North America diverged in September, according to the latest Thomson Reuters/Ipsos Primary Consumer Sentiment Index readings.

In the United States, the PCSI rose to 50.45 from 49.38 in August, indicating an improvement in household sentiment after the previous month’s decline. The index measures consumers’ views on economic conditions, personal finances, purchasing comfort, job security and expectations.

Canada moved in the opposite direction, with the index falling to 47.35 from 48.19. Canadian households have remained cautious amid affordability pressures, trade uncertainty and concerns about inflation and the broader economic outlook.

Mexico’s PCSI also weakened, declining to 50.84 from 52.77 in August.

The September figures therefore point to improving consumer confidence in the U.S., while sentiment deteriorated in both Canada and Mexico.
Mexico GDP Expands 1.4% in Q2, Slightly Missing Expectations

Mexico’s economy expanded strongly in the second quarter of 2026, although final GDP figures came in slightly below expectations and were revised lower from preliminary estimates.

GDP increased 1.4% quarter over quarter, compared with the 1.5% expected. The expansion represents a significant rebound from the revised 0.3% contraction recorded in the first quarter.

On an annual basis, GDP grew 2.1%, also slightly below the 2.2% forecast.
Mexico Economy Grows Faster Than Expected in Second Quarter

Mexico's economy expanded more strongly than expected in the second quarter of 2026, with both quarterly and annual GDP growth beating market forecasts, signaling a solid rebound after the contraction recorded in the previous quarter.

Gross domestic product grew 1.5% quarter-over-quarter, well above expectations of 1.3% and reversing the 0.6% contraction recorded in the first quarter. On an annual basis, the economy expanded 2.2%, comfortably exceeding the 1.5% consensus estimate and accelerating from 0.2% growth in the previous quarter.
Mexico Inflation Slows More Than Expected in June, Strengthening Case for Further Rate Cuts

Mexico's inflation cooled more than expected in June, reinforcing expectations that the country's central bank could continue easing monetary policy in the coming months.

Mexico's Inflation Falls Below Forecasts

Consumer prices fell 0.27% month over month in June, exceeding expectations for a 0.13% decline and following a 0.21% decrease in May.

On an annual basis, inflation slowed to 3.37%, below the market consensus of 3.52% and down from 3.94% in the previous month. The reading brings headline inflation closer to Banco de México's target range and suggests price pressures continue to ease.
Mexico’s economy contracted 0.6% quarter-over-quarter in the first quarter, slightly better than expectations for a 0.8% decline but marking a sharp reversal from the previous quarter’s 0.9% growth. On an annual basis, GDP growth slowed dramatically to 0.2% from 1.8%, though it came in marginally above forecasts of 0.1%. The data points to a significant loss of economic momentum, highlighting weakening domestic and external demand conditions.
Mexico annual inflation slowed to 4.45% in April, slightly below expectations of 4.50% and down from 4.59% previously. Monthly CPI also eased sharply to 0.20%, below the expected 0.25% and much lower than the prior 0.86% increase.
Mexico’s trade balance shifted to a surplus of $2.50 billion in March, improving sharply from a $980 million deficit in the previous period.
In Mexico, the unemployment rate rose slightly to 2.8% in March from 2.7%, indicating a marginal softening in labor market conditions.

Economic activity increased 0.1% month-over-month in February, recovering from a 0.7% decline but falling short of expectations of 0.5%, suggesting a modest and slower-than-expected rebound.
Mexico’s retail sales fell by 0.9% month-over-month in February, significantly worse than the expected -0.1% and reversing the previous 1.0% increase.

Emerging markets may offer more than meets the eye. Selectivity matters. | J.P. Morgan Private Bank EMEA EN

Beneath broad market caution, pockets of resilience across emerging markets could be worth a closer look. Growing dispersion and stronger fundamentals may favor a more selective approach to the asset class.

(privatebank.jpmorgan.com)
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