Mexico retail sales declines unexpectedly but a positive trend should continue

Mexico's retail sales declined 0.3% m/m sa in April mainly driven by a contraction in supermarket, apparel and food sales.  In annual terms, retail sales increased 4.6%. The unexpected decline contrasts with the positive performance observed in ANTAD same stores sales (0.9% m/m sa) also observed in April.

However, we expect positive prints down the road, as ANTAD sales also reported a strong print in May by increasing 1.9% m/m sa in real terms. The sector should consolidate its trend and the labor market conditions continue improving, says Barclays 

Next Wednesday, the GDP proxy is likely to increase 0.5% m/m sa for this month. Although this print could set some downside risks to our forecast, the services sector could be more influenced by the strong manufacturing print observed in April, adds Barclays