The Day at a Glance | October 4 2023

*Retail sales in the Eurozone fell much more than expected in August. 

*Producer prices in the Eurozone set in line with the consensus estimate, dropping by -11.5% y/y and increasing by 0.6% m/m. 

*Major bond markets worldwide were affected by massive sell-offs of government bonds. 

*Republicans are seeking a new leader for the US House of Representatives. 

*The OPEC+ panel kept its oil production policy unchanged as cuts were decided on behalf of Saudi Arabia and Russia. 

*British Prime Minister Rishi Sunak canceled part of a controversial railway project, causing discontent within the Conservative party. 

*In September, local vehicle sales in Mexico reached 118,038 units. In the January-September period of 2023, 975,841 units were sold.

Economic environment

Retail sales in the Eurozone recorded an annual -2.1% decrease in August. August´s reading compared unfavorably to the -1.0% forecasted by analysts, falling for the eleventh consecutive month. On a monthly basis, retail sales dropped by -1.2%, also surprising negatively after the -0.2% decline logged in July and the -0.5% expected by the consensus. The decrease in retail sales was primarily driven by a -4.5% decline in online sales (+3.7% prev.) and a -3.0% drop in car fuel (-0.6% prev.). On an annual basis, the surprise in retail sales was mainly due to a larger decline in fuel sales, contracting by -7.7% from July’s -2.3%. Overall, retail sales data in the Eurozone continues to be negative, with inflation reaching 5.3% in August, well above the ECB’s 2% target.