Households in Mexico Grow Wary as Consumer Confidence Index Drops Again

The National Institute of Statistics and Geography (INEGI) reported that Mexico’s Consumer Confidence Index fell to 45.3 points in April 2025. This marks the lowest level since October 2023 and extends a six-month slide.

The drop signals growing caution among Mexican households, who now view both their current and future economic prospects with greater skepticism. The index fell from 46 points in March and stands well below its October 2024 peak of 49.2 points.

Households reported a weaker assessment of the country’s present situation, with a score of 42.1, and outlook for the next year, at 48.6. Expectations for family finances also slipped, while willingness to make large purchases dropped to 29.4 points.

Rising inflation has contributed to this pessimism. INEGI data show that annual inflation reached 3.93% in April, up from 3.8% in March. Although inflation remains within the central bank’s target range, it erodes purchasing power and dampens consumer sentiment.

The Bank of Mexico responded by lowering its benchmark interest rate to 9% in March, the lowest since September 2022, and may cut rates further if inflation stabilizes.

Mexico’s economic outlook faces additional uncertainty from shifting U.S. trade policies and global market volatility. These factors weigh on both household confidence and business investment.

Retail sales and private spending have also softened, reflecting the cautious mood. The sustained decline in consumer confidence highlights the real pressures facing Mexican families.

Economic headwinds, persistent inflation, and uncertain trade conditions have combined to dampen optimism and slow spending. Businesses and policymakers now watch closely for signs of stabilization or further decline as 2025 unfolds.