The Day at a Glance | February 24 2023

*Mexico`s economy logged 3.1% growth during 2022.

*The IGAE rebounded at a monthly rate in December, although its annual trend confirms a slowdown in the 4Q22.

*In the US, the Consumer Deflator surprised to the upside in January as it logged a 5.4% annual increase, above the 5.0% figure logged in December and exceeded the consensus` estimate. Similarly, the underlying consumer deflator increased 4.7% vs. the expected 4.3% and previously recorded 4.4%.

*Consumer spending in the US (monthly consumption figure) accelerated in January (1.76%) and logged its highest figure since March 2021.

*February 24th marks one year since the start of the war between Russia and Ukraine, for which during a ceremony in Kyiv, President Volodymyr Zelensky said that 2023 will be a turning point in the conflict. 

Economic environment

The Global Indicator of Economic Activity logged 0.35% growth in December. This reading compares positively to the 0.1% estimated by the Timely Indicator of Economic Activity (IOAE) made known last week, and set above the contraction logged in November (-0.41%). By component, secondary activities increased 0.67% and were mainly driven by the construction sector which hiked 2.65% m/m; tertiary activities, recorded 0.30% growth with mostly positive readings, and was led by financial services (1.84% m/m) and accommodation services (1.60% m/m). This data was complemented by a growth of 0.24% in the primary sector. On an annual basis, the IGAE increased 3.06%, almost half a percentage point above the estimated IOAE (2.6%), which, although it set above the average for the 2010-2019 period (2.6%), it confirms a slowing trend during the 4Q22 as it had logged a  5.14% figure in September. By component, the industrial sector grew 3.09% (previously published figure), services did the same in  2.79%, and primary activities increased 8.04%. Regarding GDP, the final figure for 2022 was 0.1 percentage points higher than the previous estimate of 3%. However, the final 3.1% reading recorded a significant slowdown compared to the 4.7% logged in 2021. Primary activities increased 2.7%; secondary activities did the same in 3.3%, and tertiary activities hiked 2.8%.