The Day at a Glance | October 20 2023

*Retail sales in Mexico moderated their pace of growth in August. 

*The Chamber of Deputies approved the Federal Revenue Law for 2024 in its entirety, which includes a reduction in the tax burden on Pemex.

*During his prime-time speech on Thursday night, US President Joe Biden appealed to the American people for their support for Israel and Ukraine, announcing an aid package that he will send to Congress, requesting more than 100 billion dollars. The package also includes assistance for Taiwan and resources for the Mexico-US border.

Economic environment

Retail sales in Mexico recorded a 3.2% y/y rate of growth based on the original series in August. This reading set below the 4.4% y/y expected by the consensus and the 5.1% y/y logged in the previous period. Additionally, the seasonally adjusted series also logged a significant slowdown – with a 3.2% y/y figure compared to the 6.2% y/y average over the previous 18 months. On a monthly basis, and for the second consecutive month, there was a contraction that was even greater than the one recorded in July (-0.4% vs -0.1% m/m prev.). There was marked disparity between sectors, with an annual 34.2% increase in online sales, followed by double-digit expansions in the sale of textile products (10.7% y/y), clothing and footwear accessories, as well as self-service and department stores (10.1% y/y). Simultaneously, motor vehicle sales fell by -4.9% y/y, accompanied by a decline in hardware items (-1.4% y/y).