Internet sales catapult retailers – El Sol de México

Internet sales registered in July catapulted retail trade, which registered a growth of 0.9 percent at a monthly rate, according to data from the National Institute of Statistics and Geography (Inegi).

Digital commerce grew 12.5 percent at a monthly rate, that is, compared to the previous month (June), in addition, the sale of household goods also registered, although more moderately, a rate of 3.4 percent. Both components boosted retail sales performance.

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Although to a lesser extent, sales of automobiles and spare parts, trade in textiles and trade in self-service stores also contributed to the registration of retail trade.

In interview with The Sun of Mexico, specialists agreed that the result for July derives from the summer offers assigned by the businesses; however, issues such as the flow of government social support, the increase in wages and pensions, and remittances have influenced people to increase their purchasing power and consumption.

“It has to do with the summer offers that boosted these indicators; the return to classes influenced but perhaps it will be more noticeable for the August survey”, commented the deputy director of Economic Analysis of Grupo Financiero Monex.

He commented that it is important that consumption continues to rise since it contributes to 50 percent of the Gross Domestic Product (GDP) of Mexico. He added that it should be noted that despite the rise in products in general, inflation did not stop Mexican consumption, at least for July 2022.

For his part, the deputy director of Economic and Stock Market Analysis at CI Banco, James Salazar, highlighted that the arrival of remittances to Mexico by Mexican migrants in the United States, as well as the flow of social support from the government, helped people increased their economic income, an issue that encouraged consumption during the seventh month of this year.

“They did very well in July, in general the economic activity surprised in this month; the issue of retail sales brings significant inertia and they still do not fully reflect inflationary pressures or the rise in interest rates,” said Salazar.

He added that in August a decrease in economic activity and consumption could be observed since a certain stagnation begins to consolidate and this would affect consumption.

According to an analysis by Monex, sales are one of the few indicators that have recovered after the sharp falls caused by the Covid-19 pandemic and that, in fact, with the rise in July they show an advance of 2.8 percent. against its last all-time high.

“However, the heterogeneity of the recovery calls for caution in the interpretation of the rebound, since practically half of the components of the general index still have lags of more than 5.0 percent”, highlighted the financial group.

Hardware and health care and food and beverages still show lags and contractions, while the health sector recorded zero monthly progress.

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