The Day at a Glance | July 4 2023

*Local vehicle sales set at 113,553 in June. Meanwhile, during the January-June period of 2023, 633,087 units were sold. 

*Remittances broke a record in May with a $5.693 billion figure, surpassing the previous all-time high logged in October of last year ($5.361 billion). 

*Indicators from Mexico´s IMEF for June suggest that economic momentum remains in place.  

*Mexico´s manufacturing PMI recorded a 50.9 figure (50.5 prev.), reflecting a moderate rate of expansion and marked its fifth consecutive monthly improvement. 

*The US manufacturing ISM logged a contraction for a seventh consecutive month with a 46 point reading (46.9 prev.). 

*China announced control measures on exports of certain metals widely used in the semiconductor and electric vehicle industry. 

*NATO agreed to extend the mandate of Secretary General Jens Stoltenberg for one more year. 

Economic environment

Family remittances reached their highest historical figure in May. Transfers from Mexicans abroad amounted to $5.693 billion in May, surpassing the previous monthly all-time high reached in October of last year ($5.361 billion). This figure was boosted by a record number of transactions and a recovery in the average amount per transaction. Overall, May´s figures are encouraging for local consumption, which remains strong. However, due to the exchange rate effect, the average remittance in pesos decreased on an annual basis. 

Indicators from Mexico´s IMEF for June suggest that economic momentum prevailed at the end of the 2Q23. While economic activity continues to grow, its momentum has lost some strength. The manufacturing index increased by 1.2pp compared to the previous month, reaching 50.9 units, indicating that the sector is expanding marginally. According to the manufacturing indicator, industry activity is slow but pointing towards slight expansion. As for the non-manufacturing index, it has remained in expansionary territory for 17 consecutive months: its May figure set at 51.5 points (51.1 prev.). This figure suggests that the services sector continues to be the economy´s main driving force.