The Day at a Glance | May 31 2023

*The Ministry of Finance and Public Credit (SHCP for its initials in Spanish) published April´s public finance figures. An increase in revenue stood out. 

*On Tuesday, the Rules Committee of the House of Representatives approved the bill that would suspend the debt ceiling in the United until January 2025 with a 7-6 vote. Now, the proposal will be voted on in the lower house. 

*China´s PMI´s for May surprised to the downside. The manufacturing indicator logged a greater than expected contraction (48.8 vs 49.5 e.); while the non-manufacturing indicator remained in expansionary territory, although it recorded a greater than expected slowdown (54.5 vs 55.2 e.). 

*Consumer confidence in the United States recorded a slight decline in May compared to the previous month, reaching 102.3 points (-1.4). Both the current situation perception component and the expectations component deteriorated. 

*The Central Bank of Mexico will publish its quarterly report corresponding to the January-March 2023 period today at 1:00 pm. 

*The SHCP will carry out a swap operation on June 2nd; it will exchange Bondes F with maturities between 125 and 545 days for Bondes F with maturities between 853 and 3,429 days. 

Economic environment

The Ministry of Finance and Public Credit released the report on the state of public finances through April. The balance showed a deficit worth 64 billion pesos, which was less than expected. It was highlighted that there was a 4.5% real growth rate in revenues, boosted by a 25.4% year on year increase in tax collection. Specifically, income tax (ISR in Spanish) increased 32.5%, while value added tax (IVA) revenues increased 4.9%.