The Day at a Glance | January 25 2023

*Economic activity in Mexico slowed down more than expected during November.

*PMIs improved in the US, although the remained in contractionary territory at the start of 2023.

*The Philadelphia Fed`s non-manufacturing activity index set at -6.5 in January.

*US mortgage applications logged a 7.0% increase in the week ending January 20th, according to data made public by the Mortgage Bankers Association.

*The Secretary of the Treasury and Public Credit will exchange government securities on Thursday, January 26th. It`s expected to consist of D and F Bonds with deadlines shorter than 2-years in exchange for F Bonds of between 2 and 3 years. 

*Germany agreed to send 14 Leopard 2 tanks to Ukraine. Russia said this was an “extremely dangerous decision”.

Economic environment

The General Economic Activity Index (IGAE for its initials in Spanish) decreased -0.45% monthly in November. The most recent figure is explained by a -0.94% contraction in services and null growth (0.02%) in industrial activities. For its part, the agricultural sector increased 5.31%. At an annual rate, the IGAE hiked 3.3% and recorded a slowdown for the third consecutive month from the 5.73% it had logged in August. Similarly, services linked their third descending month by logging a 3.0% annual figure. Primary and secondary activities logged acceleration of 7.2% and 3.2%, respectively; although in the industrial sector`s case, this was due to a favorable base comparison. Additionally, it`s worth pointing out that secondary activities were the only group that logged levels below those seen before the pandemic. Recent data confirms that there is slower momentum in the country`s economic activity towards the end of 2022, a trend that extends through December as the Timely Economic Activity Indicator forecasts a 2.65% figure for the year`s last month.