The Day at a Glance | July 12 2021

The Top

*In Mexico, industrial production increased marginally in May (0.1%).

*Christine Lagarde, President of the ECB, showed concern over Europe`s recovery due to the delta variant`s spread.

*EU will delay putting forward digital levy plan; negotiations regarding a minimum corporate tax at a global level continue.

Economic environment

Industrial production in Mexico continues to recover. Figures published by the INEGI this morning show that industrial production increased in 0.1% during May, slightly below the estimated 0.3%. At an annual rate, the recovery has logged a 36.6% rebound (vs 36.9% e.) after the pandemic`s effects last year. Construction led the sector`s expansion during the month as it recorded a 2% increase, followed by utilities (1.3%) and mining (1%). The only sector that didn`t record contraction was manufacturing (-0.7%). By subsector, the largest contractions during the month were seen among the following industries: Transportation equipment manufacturing, computer and electronic equipment (-2.6%), and paper (-1.7%). At an annual rate, the manufacturing (48.3%) and construction (45.9%) industries have been the ones to record the fastest rate of recovery, with smaller growth logged in mining (9.2%) and utilities (8.8%).