The Day at a Glance | March 16 2021

The Top

· The US will start working on an infrastructure plan, although an increase in taxes is expected in order to fund the projects.

· The FED will hold its monetary policy meeting today; it`s expected to comment on the rise in long term interest rates.

· In Germany, the ZEW index improved during March.

· Xi Jinping warns companies that have collected data and have substantial market power.

Economic environment

Retail sales in the United States fell more than expected during February. Throughout the month, retail sales decreased 3% month over month – recording a greater than expected contraction. However, January`s figure was revised upwards from 5% to 7.6%. The weakness seen in sales was a result of bad weather in most regions of the country, and a fall in demand. However, a recovery is expected to occur in the following months because of external factors such as the weather along with a boot from the fiscal stimulus that has been recently approved (1,400 dollars along with unemployment aid). On top of this, vaccine programs are being carried out quickly in the United States.

Industrial production in the US recedes in light of bad weather. Industrial production data for February was made public and showed a 4.2% annual decrease, while only a 0.5% drop was expected. The decline was a result of bad weather and linked 18 months of decline in industrial production because of the pandemic. Manufacturing activities recorded a 3.1% decrease. A recovery is expected to occur in the following months amidst a positive dynamic regarding fiscal stimuli in the United States.