The Day at a Glance | June 28 2021

The Top

*Imports grew more than exports in Mexico during May.

*Central Bank of China will maintain flexibility to back the slow recovery in consumption.

*Biden will begin his national tour to promote the infrastructure spending program; Democrats fear that the package will not include everything that was promised.

*COVID-19 cases at a global level recorded their first rise since the end of April (370 thousand average cases in the last 7 days).

Economic environment

Mexico`s trade balance recorded a smaller than expected surplus in May. According to timely figures regarding Mexico`s trade balance, published by the INEGI, the trade surplus set at only 340 million dollars after a larger increase in imports than in exports was logged during the month of May. Month over month, imports increased 4.22%, with a 16.65% surge in consumer goods, which suggests that the recovery in demand continues; even though oil imports were the ones that increased the most (19.93%), above non-oil imports (2.64%). Capital goods (3.06%) and intermediate goods (2.5%) imports increased more moderately with respect to consumer goods. Exports, for their part, increased only 1.2% monthly, and growth was boosted by non-oil exports (1.31%). With this, the balance set at 340 million pesos, and recorded a surplus lower than the estimated 1,200. At an annual rate, exports recorded a 125.2% rise, while imports increased 87.5%. Manufacturing exports are the ones that have recovered the most in the last year, particularly in automobiles; while in imports, the recovery seen in oil stands out.