The Day at a Glance | October 15 2021

The Top

*Retail sales in the United States exceeded estimates by logging growth in September.

*The rise in prices in Mexico`s economy is concerning: Jonathan Heath, Deputy Governor of the Central Bank of Mexico.

*Electric reform will not cancel contracts with private businesses for the generation of electricity through renewable sources: Morena.

*Central Bank of China assured that the financial system`s risks because of Evergrande`s collapse are manageable and that it`s unlikely this will carry over.

*Biden signed Congress`s approval of increasing the debt ceiling.

*China relaxes credit restrictions for the purchase of homes in order to avoid the real-estate sector`s situation from worsening.

Economic environment

Consumption remains strong in the United States. Retail sales data in the United States recorded a surprising increase during September, despite expectations of a decrease (0.7% monthly vs -0.2%e.). Annually, retail sales recovered at a 13.95% rate. Within the control group, which seeks to follow up on consumption, there were also surprising increases as sales increased 0.8% (vs. 0.4%e.). The data shows overall improvement with strong demand for goods and services. Demand for bars and restaurants increased 0.3%, while overall demand for goods (motor vehicles 0.5%; clothing 1.1%; sporting and entertainment goods 3.7%) shows signs of persistent growth that could maintain pressures on productive chains. At the moment, inflation doesn’t seem to have stopped U.S. consumers from spending, and overall consumption remains strong.