The Day at a Glance | January 3 2023

• Mexico´s manufacturing indices entered expansionary territory in December.

• Remittances logged 4,801 million dollars in November and reached 53,168 million during the January-November period, 13.5% more than what was logged in the same period of 2021.

• In China, the Caixin manufacturing index remained in contractionary territory for a fourth consecutive month and decreased to 49.

• Inflation in Germany slowed down for a second consecutive month; it set at 8.6% in December.

• December´s final US manufacturing index will be made public today; a preliminary reading set at 46.2, the lowest level since May of 2020 (39.8).

• Norma Piña was elected as the first woman President of the Supreme Court Justice today.

• Ukraine credited itself with the death of hundreds of Russian soldiers in Makivka, part of the Donetsk region, which is currently occupied by Russia. The Russian Minister of Defense has only acknowledged 63 Russian deaths.

Economic environment

Mexico´s manufacturing industry closed 2022 strongly. The S&P´s manufacturing index set at 51.3 in December – from a previous 50.6, its fourth consecutive expansion and has left its 46 point figure (January) behind. There was an improvement in the new orders component, which reached its highest figure since February of 2019 at 50.9, which could respond to anticipated purchases for next year, amidst expectations of seeing higher prices. With this, the cost of inputs once again increased in light of scarcity of raw materials and the war in Ukraine. Additionally, the IMEF´s manufacturing indicator was made known, which set at 51.8 points (+1.3); it was boosted by an improvement in new orders (52.2); production (55.1) and delivered products (49.1). The employment component decreased -1.1pp, but remained above the 50 point threshold. Lastly, the non-manufacturing index linked its eleventh consecutive month of expansion, with a 53.5 point level. Only the delivered products component closed 2022 in contractionary territory (49.8). Overall, the manufacturing industry closed 2022 better than how it began as it was boosted by a recovery in demand. However, input costs, high price levels and the accumulation of layoffs continue giving warning signs and should be kept an eye on at the start of 2023.