The Day at a Glance | October 25 2022

*Mexico´s economy surprisingly logged greater than expected growth in August (1% m/m; 4.7% annual).

*The FED could lose 80 billion dollars by the end of the year due to lower bond prices it has in its balance sheet.

*Senators are concerned about the debt ceiling increase requested by the SHCP in 2023; the government argues that the country´s indebtedness level relative to GDP remains stable.

*Italian Prime Minister Giorgia Meloni proposed changes in the EU and criticized the ECB´s strategy.

*Rishi Sunak was elected to be the United Kingdom´s Prime Minister.

*PEMEX delays being energy self-sufficient, it now expects to achieve said task in 2024.

*Rent increases became more moderate among main US cities (7.5% annual, Sep.).

Economic environment

Growth in Mexico. The Indicator of Global Economic Activity (IGAE for its initials in Spanish) confirmed 1% monthly growth in Mexico´s economy during August, which implies an acceleration with respect to July´s figure. At an annual rate, growth set at 4.7%. The tertiary sector´s rate of growth stood out as it logged a monthly 1.2% (5.4% annual) while the industrial sector didn´t record growth (0% m/m; 3% annual). The data suggests that the domestic market´s recovery has remained strong in the second half of 2022 despite the fact that some leading indicators are pointing towards moderation at the end of the year. A low base comparison (2021) significantly helped log high annual figures.