The Day at a Glance | February 5 2021

The Top

· Employment in the US grew below estimates in January; December`s figures were strongly adjusted downwards.

· Oil prices reach their highest level in a year, boosted by declining inventories and optimism revolving around vaccines.

· Automobile sales in Mexico fall 22.6% in January due to restrictive measures implemented because of the pandemic.

· Senate approves simple majority vote for Biden`s fiscal package; Kamala Harris cast the decisive vote (51-50).

· Fixed gross investment in Mexico increased 2.3% in November (-11.3% annual); private consumption increased 3% (-6.6% annual) during the same period.

Economic environment

The most recent data on job creation in the United States disappointed as it recorded merely 49 thousand new jobs (vs. 105 thousand e.). Even though job creation occurred in January after a strong contraction in December, the rebound stayed far from reaching expectations. Moreover, November (264 thousand vs. 336 thousand prev.) and December`s (-227 thousand vs. -140 thousand prev.) figures were revised downwards significantly. The labor market still reflects the pandemic`s impact, with job losses recorded in businesses related to accommodation, leisure & entertainment, retail sales, health and transportation. These setbacks were compensated by an increase in employment in professional services and education (public & private). With this, the rate of unemployment continued to fall and set at 6.3%, even though 5.7 million people remain unemployed with respect to February of 2020. Average hourly wages accelerated 5.4% at an annual rate. The disappointment caused by these figures suggests that greater fiscal stimulus continues to be necessary in the US in order to aid unemployed people, something that could advance Biden`s proposed 1.9 trillion dollar relief plan. In recent days, Congress – led by Democrats – has approved a series of rules of procedure in order to approve the package by simple majority without Republican support in the Senate.