The Day at a Glance | July 16 2021

The Top

*Retail sales in the United States increased more than expected (0.6% vs -0.4%e.).

*Inflation seen recently is mainly happening among some goods, which is why we continue to expect it to be temporary, even though we remain alert: J. Powell, Chair of the FED.

*Rogelio Ramirez de la O takes charge of the Ministry of Finance and Public Credit today.

*Central Bank of Japan joins efforts to fight climate change through credit for green projects.

*White House warns US companies about the risk of investing in Hong Kong.

*COVID19 cases at a global level increased for a fourth consecutive week.

Economic environment

Consumption in the United States remains strong. According to the most recent retail sales figures, consumption in the United States remained in expansion despite expectations of a contraction in June. Sales increased 0.6% monthly, with the underlying component logging 1.3% growth. At an annual rate, sales increased a yearly 17.98%. A slight contraction was expected as the effects of fiscal stimuli continue to thin down, however, figures show that Americans had strong willingness to continue spending. Most increased sales were seen among electronics (3.3%), miscellaneous stores (3.4%) and clothing (2.6%); while some contractions were logged in motor vehicles (-2%) and furniture (-3.6%). Figures also showed that consumers are slightly more inclined to spend on services and that they are an important contributing factor in the economy`s growth during the 2Q21.