The Day at a Glance | August 6 2021

The Top

*Job creation in the United States accelerates.

*Fixed investment increased 0.7% during May in Mexico (47.2% annual); private consumption grew 0.9% (29% annual).

*The infrastructure package is expected to be voted on in the US Senate this weekend.

*Yellen expects the monthly rate of inflation to return to levels consistent with the FED`s target at the end of the fall, even though the annual rate will remain high for a longer period of time.

*Worldwide COVID19 cases exceed 200 million; the spread accelerates for a seventh consecutive week and deaths link two weeks of growth.

Economic environment

Employment in the United States recovered at a fast pace in July. According to the US Bureau of Labor Statistics, the US economy created 943 thousand jobs during July, figure that set slightly above the average estimate (870 thousand) and in line with the most optimistic forecasts. With this, unemployment decreased to 5.4%. Most jobs continued to be created in the leisure and hospitality sector (380 thousand), while two thirds were created among restaurants and bars (253 thousand). The data suggests that the recovery in the labor market continues among the sectors most affected by the pandemic. The total number of unemployed people fell to 8.7 million, the lowest figure since the start of the pandemic, although still far from pre-pandemic levels (5.7 million in February of 2020). The average hourly wage increased 4% annually, a figure that set slightly above estimates (3.8%e.) despite the reintegration of lower paying jobs. Overall, the data is in line with the FED`s expectations, which could start the withdrawal of stimuli at the end of this year. The central bank is expected to announce a timetable for decreasing its purchasing program, which would be implemented starting in December.