The Day at a Glance | August 16 2023

*Industrial production in the Eurozone surprised to the upside by logging an increase in June. 

*The INEGI`s timely indicator of private consumption indicates that private consumption in the domestic market increased 3.5% y/y in June and July. 

*Industrial production in the US exceeded expectations by logging a 1.0% monthly increase. 

*In the US, the number of housing units that began construction in July recorded a 3.9% m/m increase. On the other hand, the number of building permits fell to 1.44 million, indicating a slowdown to 0.1% m/m from 1.5% m/m in June.

*Through Banxico – in its role as financial agent of the federal government – the Ministry of Finance and Public Credit will carry out a syndicated auction for the placement of the new 5-year M Bond, maturing in March 2029. The new bond has a 8.5% interest rate, and the maximum amount for the operation is 13,000 million pesos.

Economic environment

The Eurozone`s industrial sector recorded a monthly 0.5% increase in June, widely surpassing the null growth figure expected by the consensus. The better-than-expected reading can be attributed to a rebound in energy production, which increased 0.5% m/m from May’s -2.1% m/m. In contrast, the production of intermediate and capital goods fell by -0.9% m/m and -0.7% m/m, respectively. On an annual basis, there was relative improvement compared to the previous figure (-2.5% y/y in May), as well as against the analysts’ expected -4.0%, by logging an annual -1.2% y/y contraction.