The Day at a Glance | October 12 2020

The Top

· The recovery slows down in the Mexican industrial sector during August.

· BoJ shows willingness to carry out greater stimulus in case it`s necessary to counter COVID-19`s economic impacts.

· IMF and World Bank annual meetings begin; they warn of a differentiated recovery after the pandemic and call for the suspension of payments of debt from the world`s poorest countries.

Economic environment

Industrial production in Mexico increased a monthly 3.3% during August, boosted by the construction sector. This is the weakest monthly expansion since June when the economy`s recovery began, which suggests that activity has lost momentum. The data confirms what was seen in the IMEF`s leading indicators and could recover its momentum towards September. The manufacturing industry and mining showed the weakest expansions in August (0.8% monthly, respectively), with greater dynamism in construction (11.2% monthly). At an annual rate, industrial production remained (-) 8.4% below what was seen in August of 2019, with contractions in all sectors (Construction -14% annual; Manufacturing -7.7%; Utilities -4.8%; Mining -3.8%). Industrial production has been one of the activities that has shown a greater recovery in Mexico and has been boosted by the automotive sector and exports. It`s expected to continue to show a firm recovery, in line with the US economy.