The Day at a Glance | August 31 2020

The Top

· Solid recovery in China during August.

· The Mexican government´s income dropped 10.7% annual real in July; the 2021 draft budget is expected this week.

Economic environment

Economic activity leading indicators in China show that the economy`s recovery has continued throughout August, with services leading the way. The non-manufacturing indicator set at 55.2 (vs 54.2 Jul.), its highest level since early 2018 and maintained its momentum of recovery in most of the economy; manufacturing showed a slight moderation in its growth (51 vs 51.1 Jul.). The services sector has been able to recover as the government has gradually reduced social distancing policies; meanwhile, manufacturing keeps being boosted by investment from the government and the global economic reopening. It`s expected for the indicators to start to show stabilization at their current levels as demand is still limited. Fiscal and monetary stimulus are also expected to be maintained towards the end of the year.

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