Consumer credit rises 13.5% in September, its biggest jump in more than a decade – El Financiero

2023-11-01 08:00:03

Despite high interest rates, consumption in Mexico is accelerating and recorded real annual growth of 13.5 percent in September in credit granted by commercial banks to the private sector, according to Bank of Mexico (Banxico).

This is its strongest growth since February 2013, when it expanded 14.8 percent in real annual terms and, in addition, it has already recorded seven months of double-digit annual increases.

Regarding consumption, the behavior of credit cards stands out, whose expansion was 17.3 percent real annual in September; in payroll it was 10.6 percent and in personal credit it was 8.4 percent.

The total amount of consumer credit was 1.36 billion pesos, from a portfolio that contains 5.86 billion pesos.

Regarding housing, a real annual growth of 5.2 percent was observed in the credit granted during September, lower than the 5.5 percent in August; while credit to companies and individuals with business activity, the increase was 2.3 percent annually.

“Looking ahead, high real rates will likely keep lending subdued in the near term, which may be partially offset by resilient growth and construction investment momentum,” said Alberto Ramos of Goldman Sachs.

At a general level, the total credit portfolio grew 5.8 percent in real terms annually, accelerating for the third month in a row and being its highest rate since April 2020.