February 3, 2017 / 4:13 PM / a year ago

UPDATE 1-Mexico consumer confidence hits record low as Trump looms

(Adds data, quote)
    MEXICO CITY, Feb 3 (Reuters) - Mexico's consumer confidence
index fell to its lowest level on record in January, the
government said on Friday, amid accelerating inflation and an
uncertain economic outlook after Donald Trump became president
of the United States.
    When adjusted for seasonal factors, Mexican consumer
confidence slid 15.1 percentage points to 69.3 in
January, the same month Trump took office threatening to scrap
the North American Free Trade Agreement, build a Mexican-funded
southern U.S. border wall and deport million of undocumented
    The January figure is the lowest the national statistics
agency has recorded in the data series which began in 2001. 
    Trump's victory has sent shock waves through Mexico,
threatening to upend years of cooperation between the
neighboring countries.
    U.S. threats to rip up a free trade deal with Mexico cast a
chill over company investment plans, while worries of slower
growth and inflation could hit private spending. 
    Following Trump's Nov. 8 win, the peso fell to a series of
record lows, fanning inflation and helping drive President
Enrique Pena Nieto's popularity to fresh lows. 
    Mexico's annual inflation shot up in early January to 4.78
pct, its fastest pace in over four years, stoked by a
government-led increase in gasoline prices. 
    Consumer prices are seen rising to over 5.2 percent this
year, according to a central bank poll published this week, a
move well above policymakers' upper limit of 4 percent that will
likely fuel further interest rate hikes.  
    "The fall in consumer confidence is directly related with
Donald Trump taking office, and his threats toward Mexico, but
it's also affected by inflationary pressures," Gabriela Siller,
of Banco BASE, said in an investor note. 
    In unadjusted terms, the consumer confidence index
 fell to 68.5 during the month from a prior reading
of 85.7. 

 (Reporting by Gabriel Stargardter Editing by W Simon)
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