The Day at a Glance | May 19 2023

*Retail sales in Mexico slowed down more than expected in March. 

*In the US, existing home sales recorded a monthly -3.4% decline (vs -3.2% m/m e.) in April, equivalent to 4.28 million units. 

*The leading indicator in the US for April declined by -0.6%. 

*The Speaker of the US House of Representatives has been optimistic about the direction that the debt ceiling discussion has taken and indicated to CNN that he expects a proposal by next week. 

Economic environment

Retail sales in Mexico recorded 2.4% year on year growth in March. This is the second consecutive downward reading and set below the expected 2.9% y/y figure. Setbacks continued in grocery sales (-4.78% y/y), household appliances (-5.18% y/y), and hardware items (-9.63% y/y); contrasting with an acceleration in vehicle sales (6.93% y/y). Other sectors continued to expand, although at a slower pace, including department store sales (3.61% y/y). Overall, despite the cumulative effect of inflation and high borrowing costs, retail sales continued to grow in the first quarter, although in a heterogeneous manner. However, the slowing trend persists – even with some negative growth figures throughout the quarter.