Thread: Mexico May consumer confidence hits 4-1/2-year low

Mexico May consumer confidence hits 4-1/2-year low

REUTERS

12:57 p.m. June 4, 2008

MEXICO CITY – Mexico's consumer confidence index fell to 94.2 points in May, the lowest in 4-1/2 years, from 97.8 in April, as households wrestled with rising food prices and an expected economic slowdown.
Mexicans were less optimistic during May about their current economic situation and also less upbeat about their future economic conditions, the government said Wednesday.

May's was the lowest reading of Mexican consumer confidence since November 2003, when it was also 94.2.
Inflation across Latin America has jumped in recent months as rapidly developing economies like India and China boost global demand for food commodities, while grains are also diverted to make biofuels.

Higher grain prices have especially hurt the poor because they spend a higher portion of their incomes of food.

Mexico's government predicts the economy will slow over the next few months, growing 2.8 percent for full 2008, down from 3.2 percent last year.

(Reporting by Noel Randewich; Editing by James Dalgleish)

http://www.signonsandiego.com/news/mexi ... nomy-.html

The whole darn world is feeling the pinch......