Mexico's Private Consumption Fell 1.3% On Year In 4Q - Inegi

Private household consumption in Mexico fell in the fourth quarter of 2008 for the first time in more than five years as the economy turned negative and credit became harder to come by. The National Statistics Institute, or Inegi, said Friday that private consumption fell 1.3% from the fourth quarter of 2007 - its first year-on-year decline since the second quarter of 2003. Aggregate demand in the fourth quarter fell 3.2% from a year earlier, with the drop in private consumption and an 8.8% decline in exports partially offset by a 0.1% increase in government consumption and a 0.6% increase in fixed investment. Robust domestic consumption had been sustaining growth in the economy thanks in part to several years of solid credit expansion. Banks began to cut back on consumer lending last year, however, as the rate of nonperforming credit card loans increased. For the full year, private household consumption rose 1.5%. Gross domestic product fell 1.6% in the fourth quarter, and is also expected to contract this year as a result of the U.S. recession and weak domestic demand.