The Day at a Glance | March 1 2021

The Top

· China`s economy slows down during February due to lunar new year festivities.

· The US House of Representatives approved Biden`s proposed fiscal package on Saturday; it will go to the Senate.

· Mexicans transfered more than 9 billion dollars out of the country during 2020: Banxico.

· Manufacturing PMI in Europe was revised upwards slightly (57.9 bs 57.7 prev.); it gives signs of greater strength in the industrial sector.

Economic environment

China`s economic recovery continued during February, even though it did so at a more moderate pace due to lunar new year celebrations. Manufacturing and services recorded their lowest levels of activity since spring of last year, with figures setting below estimates. Manufacturing activities slowed down to 50.6 (vs 51.3 prev.), while services also loosened their rate of expansion (51.4 vs 52.4 prev.); the Composite PMI, which captures activity in the entire economy, slowed down to 51.6 (vs 52.8 prev.). Lunar new year festivities in the country had an important impact on figures, as per every February, since some activities, production and certain businesses suspended their operations. It`s estimated that some COVID-19 outbreaks in the northern part of the country along with extreme climate conditions also could have contributed to the figures being weak, especially regarding services. Even contractions were recorded in new export orders and employment, even though they are expected to normalize in March. Greater acceleration was seen in the sectors` sub-indices, where retail sales, entertainment businesses and other sectors linked to at home consumption logged greater acceleration in February than in January.