The Day at a Glance | May 12 2023

*Industrial production in Mexico slowed down during March and surprised to the downside. 

*Consumer Sentiment – measured by the University of Michigan – decreased in May. It logged a 57.7 point figure (vs 64.5 points prev.). Current conditions and expectations decreased. 

*In the United States, the imported prices index logged a rebound in April (to 0.4% m/m vs -0.6% m/m prev.). However, at an annual rate, it decreased even more (-0.2pp) and set at -4.8%. 

*Senior US military officials indicated that Ukrainian forces have begun preparing for operations in a long-anticipated counteroffensive, according to CNN. 

Economic environment

Industrial production in Mexico slowed down during March and recorded a 1.6% figure. This set below both the previously recorded 3.5% y/y (revised to 3.3% y/y) and the consensus estimate of 2.7%. Furthermore, March`s figure recorded the slowest pace of growth since October 2021. All components recorded positive readings, although they showed significant slowdown compared to February`s figures, except construction, which marginally accelerated (+0.1pp) to 2.1% y/y. As for manufacturing production, it slowed down to 1.1% y/y (vs 2.1% y/y) due to two-thirds of the industries comprising it recording negative annual readings. On a monthly basis, industrial production declined by -0.9% in March. This is the sharpest decline since September 2021. Mining related services decreased by -3.5% m/m in March, accompanied by a reading of -1.1% m/m in manufacturing industries. However, electricity generation and supply increased 0.9% m/m, while construction increased at a rate of 1.3% m/m after experiencing two consecutive setbacks in the previous months.