UPDATE 1-Mexico retail sales rebound in November

Wed Jan 23, 2013 9:24am EST

Related Topics

* Retail sales rise 1.1 percent in month, best since June

* Miss Reuters poll expectations for 1.9 percent rise

* Data helped by long weekend of sales, bonuses

MEXICO CITY, Jan 23 (Reuters) - Mexican retail sales jumped in November by the most since June, helped by a long weekend of sales backed by year-end bonuses, the national statistics office said on Wednesday.

Retail sales rose 1.1 percent in November from October, but missed expectations in a Reuters poll for a 1.9 percent increase. Retail sales fell 1 percent in October.

Consumer confidence rose for a second straight month in November and retailers held sales over a long weekend. Also, the government paid out year-end bonuses early in a bid to engineer a sales boom similar to Black Friday in the United States.

But the strong consumption may mean a weakening in retail sales in December.

Economic growth in Latin America's second-largest economy moderated in the third quarter and economists expect fourth-quarter activity to be affected by weaker global demand and lingering fiscal woes in the United States, Mexico's biggest trading partner.

Mexico's central bank held borrowing costs steady last week, but said it could cut interest rates if inflation continues to cool and economic growth flags, dropping its recent threat to tighten policy.

Retail sales in November were up 3.5 percent from a year earlier, compared to expectations of a 3.6 percent rise and a 3.5 percent annual rate in October.

The monthly increase was the strongest since June's 1.8 percent rise.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.