Mexico Senate Approves “Made in Mexico Day” for MSME Support

The Mexican Senate has approved a measure to designate the second Friday of September as “Día Nacional de lo Hecho en México” (National Made in Mexico Day). The initiative, which now moves to the Chamber of Deputies for discussion, aims to boost domestic consumption, stimulate national production, and recognize the talent and innovation of Mexican producers, particularly micro, small, and medium-sized enterprises (MSMEs).

Senator Armando Ayala Robles, who introduced the proposal, emphasized that internal consumption is a pillar of economic development. “By encouraging the consumption of domestic products and services, national production is stimulated, generating greater economic activity within the country,” the initiative states. The proposal seeks to reduce reliance on imports and strengthen the domestic market against adverse global conditions. The new national day would reinforce existing regulations that require at least 10% of products in self-service and department stores to be of national origin.

The measure directly targets MSMEs, which play a critical role in the national economy. Official figures show that MSMEs represent 99.8% of economic units, generate 52% of the Gross Domestic Product (GDP), and employ more than 27 million people. The “Hecho en México” seal, which certifies national origin, is aligned with Plan México, the federal government’s broader economic development strategy.

Consumer Confidence Slumps Amid Economic Uncertainty

The push for domestic consumption comes as Mexican consumer confidence posts its sharpest monthly decline in four years. The Consumer Confidence Indicator (ICC), compiled by INEGI and Mexico’s Central Bank (Banxico), fell 1.6 points in November to 44.2 points (seasonally adjusted). This is the steepest drop since December 2021 and the third consecutive monthly decline, reflecting growing pessimism among households.

Monex analysts highlighted a notable deterioration in perceptions of the country’s current and future economic conditions. The largest drop—2.4 points—was in expectations for the national economic situation one year ahead. Assessments of current personal finances fell by 0.9 points, while the indicator for purchasing durable goods dropped 0.8 points.

Complementary indicators also pointed to weakening financial stability. The savings capacity indicator fell 2.9 points in November. Combined with weaker expectations for price behavior, the decline suggests persistent inflation concerns and the possibility of softer consumer spending during the holiday season.

Inflation Risks and Wage Pressures

While consumer confidence declines, inflation expectations for 2026 continue to rise. Analysts from Grupo Base, Goldman Sachs, and other consultancies project that inflation will exceed the central bank’s 3% target, likely settling between 3.8% and 4.2%. Banxico currently expects inflation to converge to its 3% goal only by 3Q26.

Key factors driving upward inflation pressure include:

• Minimum Wage Increase: The recently approved 13% minimum wage hike marks eight consecutive years of double-digit real increases, amounting to a 168% cumulative real rise.

• Labor Costs and Productivity: While the higher minimum wage increases purchasing power, Emeritus Professor Raymundo Tenorio of ITESM told El Economista that without parallel productivity gains, the wage surge has contributed to inflation—especially in the services sector—and accelerated informal employment.

• Taxes and Social Charges: Expected increases in the Special Tax on Production and Services (IEPS) and rising employer contributions to Afore pension funds are also projected to add inflationary pressure.
   

Sectors where labor costs make up a significant share of final prices, such as agriculture, construction, retail, and food preparation, a major employer according to Tenorio, are likely to experience notable price increases.