Mexico retail sales slump, miss expectations in August

Credit: REUTERS/JOSE LUIS GONZALEZ

Adds details, economist comment

Oct 20 (Reuters) - Mexican retail sales fell more than expected in August, data from national statistics agency INEGI showed on Tuesday, mainly driven by a drop in supermarket and department sales.

Sales fell 0.4% in the month from July, below market expectations of a 0% change in a Reuters poll, and following a fall of 0.1% in July.

Pantheon Macroeconomics' chief economist for Latin America, Andres Abadia, said the drop in August was driven by declines in five of the eight key components.

"A 1.1% m/m fall in sales in supermarkets and department stores was the main drag," he added, followed by food sales which fell 0.5%, reversing from the 1.7% gain in July.

Overall, Abadia suggested that private consumption is faltering, mostly due to the drag from increased real interest rates.

Annual retail sales increased 3.8% in April, INEGI said, below the expected 4.4% rise.

(Reporting by Natalia Siniawski; Editing by Isabel Woodford)

((natalia.siniawski@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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