The Day at a Glance | January 30 2023

*The INEGI`s leading manufacturing activity indicator forecasts a slowdown in the manufacturing sector during December.

*Consumer confidence in the Eurozone continues to improve as it logged a -20.9 figure in January (vs -22.9 prev.). 

*Ahead of the release of the Eurozone`s GDP, Germany announced a slight quarterly contraction (-0.2%) in its economy in the 4Q22. On an annual basis, it remained in expansionary territory (0.5%), although below the estimated 0.8% and the previously logged 1.2%, marking its third quarter in decline.

*President Lopez Obrador announced on Friday that the Federal Government will support Pemex in debt payment. The President stated that the Treasury has a plan with Pemex`s management and that it “will be paid promptly”, adding that it will not put pressure on public finances.

*Mexico`s public finance figures for December will be released today.

*Members of the Organization of the Petroleum Exporting Countries and its Allies (OPEC+) will hold an online meeting on Wednesday. They are expected to keep their current production policies unchanged. 

Economic environment

The Monthly Timely Indicator of Manufacturing Activity (IMOAM for its initials in Spanish) logged a 4.1% annual increase in December. The INEGI`s forecast seeks to estimate the manufacturing sector`s performance, which is measured by the Industrial Activity Indicator (IMAI for its initials in Spanish). The IMOAM expects a 115.8 point reading in December, which would be equivalent to a 4.1% annual increase and would imply a slowdown in the manufacturing sector for a third consecutive month.