Walmex Expected To Be Constrained By Weak Consumer Spending Growth

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Mexico's largest retailer, Wal-Mart de Mexico (Walmex), has reported a 2.7% increase in comparable-store sales for the second quarter of 2010. This compares to growth of 3.4% in the first quarter and indicates that the consumer recovery remains fairly fragile. On a more positive note, the firms sales have picked up as the year has advanced, with comparable store sales coming in at 4.7% in June and 5.4% in May. Also, earlier this month Wal-Mart reported an upturn in discretionary spending in some items, including televisions and washing machines. However, while there are some signs of improvement, with inflation at