Domestic demand advances at the beginning of 2024: Inegi

In it first month of the yearthe productive investment started on the right footwhile consumption did so with relative weakness.

He productive investment indicator registered an advance of 0.1% monthly during the first month of the year, reported the National Institute of Statistics and Geography (Inegi).

With this, The annual rate was 13.8% during JanuaryWith which maintained the double-digit growth trend which was recorded throughout 2023. By components, spending on machinery and equipment grew 6.0% annually, while construction recorded a real annual advance of 21.2%.

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He Banorte team recognized the good results of the investmentand stated that several of the drivers that drove the indicator in 2023 are still present this year, including the budgeted spending for government projects and investment in the construction of industrial spaces.

They explained that the category of construction will continue to lead investmentalthough they made two scores.

They anticipate a divergence between segmentswell the residential construction will likely remain weaker at the marginrecognizing that input prices have accelerated in the first two months of the year, while the expectation for the non-residential sector is more positive, since it is supported by both private investment (fully associated with the demand for industrial spaces) and public (with a view to completing flagship infrastructure projects).

*Source: Inegi.

For its part, Janneth Quiroz and Rosa Rubio, economists at Monexexpressed that it is necessary to remember that the construction approach would be reaching the end of this government administration.

For this reason, the Monex analysts They said that “now it will be key to evaluate the new projects that are mentioned in the electoral campaign proposals, to evaluate if there is room to maintain this inertia favoring economic activity. Additionally, it will be key to evaluate whether the effect of nearshoring “It will be a factor that adds value to the growth in these indicators this year.”

CONSUMPTION SHOWED WEAKNESS

He private consumption indicator showed a decrease of 0.6% in January compared to the previous month, reported the Inegi.

Thus, in annual terms, private consumption achieved an advance of 1.9%, driven mainly by the increase in imported goods, which was 14.3%, which was able to offset the 0.5% drop in spending on goods and services of national origin.

Los Banorte analysts expressed that they maintain the view that the greater disposable income in households benefiting from social programsas well as the strength of the fundamentals (including the increase in wages) will be favorable winds for consumption.

However, they affirmed that the challenges remain, derived from greater volatility in prices – as well as the persistent upward trend in underlying inflation – and the possible loss of purchasing power of remittances in local currency.

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