Thu, 22 Oct 2020

MEXICO CITY, Sept. 23 (Xinhua) -- Retail sales in Mexico grew 5.5 percent in July, rising for the third month in a row, the National Institute of Statistics and Geography (Inegi) said on Wednesday.

Meanwhile, wholesalers reported a 4.5 percent increase in revenue in July compared to June, marking their second consecutive month of growth, according to Inegi.

However, year-on-year comparisons show retail sales fell 12.5 percent in July, while wholesale revenues fell 10.7 percent, the agency said.

Responding to the report, Mexico's Banorte Financial Group said the recovery of the Mexican commercial sector will continue over the coming months, but at a slower pace due to the ongoing novel coronavirus (COVID-19) pandemic.

"Today's data helps to corroborate that the worst ... is behind us, showing that efforts to reopen the economy have had a positive impact," Banorte said.

"Taking into account additional actions on this front, we believe that activity will continue to rise in the coming months," it added.

Mexico began on June 1 to gradually reactivate some sectors of the economy that had been idled since the end of March to prevent the spread of the pandemic.

The Mexican economy, the second largest in Latin America after Brazil, could contract by 10.5 percent in 2020 due to the pandemic, according to the International Monetary Fund (IMF).

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