FX.co ★ Mexico’s Retail Momentum Cools Sharply in May as Year‑Over‑Year Growth Slows to 1.6%

Mexico’s retail sector lost steam in May 2026, with year-over-year sales growth easing to 1.6%, a marked slowdown from the 4.4% annual gain recorded in April 2026. The latest figures, updated on 21 July 2026, underscore a clear deceleration in consumer spending momentum as the second quarter progresses.

The data compare each month’s performance against the same month a year earlier, highlighting that while retail activity is still expanding, the pace of growth has narrowed considerably. In April, retailers benefited from a robust 4.4% increase versus April of the previous year, but May’s 1.6% rise versus May a year earlier points to more cautious household spending or a fading of earlier support factors.

The sharp step-down in growth may prompt closer scrutiny from investors and policymakers monitoring the resilience of domestic demand. Although retail sales remain in positive territory on a year-over-year basis, the latest reading suggests a more fragile consumption backdrop heading into the remainder of 2026.