The Day at a Glance | December 19 2022

*The Timely Economic Activity Indicator (IOAE for its initials in Spanish) expects 4.2% growth in economic activity.

*Labor costs in the Eurozone slowed down to 2.9% in the 3Q22.

*The first Covid death in weeks was reported in China.

*EU ministers are still working on an agreement to set a price cap on oil. Meanwhile, Russia analyzes its response to the West.

Economic environment

The IOAE – a timely estimate of the Global Indicator on Economic Activity (IGAE for its initials in Spanish – logged a 4.2% annual variation with respect to November`s IGAE. This figure implies a slowdown with respect to October, when the IOAE expected a 4.9% annual variation. By sector, the IOAE pointed out there was a 3.0% annual variation (-0.3pp) in secondary activities; and 4.8% (-1.0pp) in tertiary activities. On a monthly basis, the IOAE forecasts a -0.1% contraction in the IGAE, and in secondary and tertiary activities. With this, October`s IGAE will be made known on Friday, which the consensus expects to log a 4.9% variation. This would be a slowdown with respect to the figures logged at the end of summer, which set above 5%.

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