The Day at a Glance | October 26 2023

The Top

*The US economy´s growth accelerated in the 3Q23 and logged its fastest expansion rate since 2021.

*The European Central Bank kept its key rates unchanged after 10 consecutive increases; however, central bank officials insist that the debate on rate cuts is still premature. 

*Mike Johnson was elected as the Speaker of the House in the US.

*The unemployment rate in Mexico dropped to 2.9% of the Economically Active Population in September, lower than the 3.3% logged a year ago. Additionally, compared to September 2022, the number of employed individuals increased by 1.6 million to 59.09 million.

*The number of new unemployment claims in the US logged a weekly 10,000 increase, reaching 210,000 claims for the week ending on October 21st. Furthermore, ongoing claims reached 1.79 million, their highest level since mid-May.

Economic environment

Boosted by consumption, the US economy expanded robustly in the 3Q23. Figures made public this morning indicated a 4.9% q/q annualized rate of growth, its best performance since the 4Q21 and set above the 4.3% forecasted by market analysts. Consumer spending increased 4.0%, also its highest reading in seven quarters, up from a previous reading of 0.8%. Furthermore, exports rebounded with a 6.2% increase after having decreased by -9.3% in the previous quarter, while imports grew by 5.7% (compared to the previous -7.6%). Residential investment recorded its first increase in nearly two years, with a 3.9% rate of growth, and government spending accelerated to 4.6% from a previous 3.3% figure. With this, the US economy still displayed resilience even despite aggressive actions on behalf of the FED and the cumulative effects of inflation. Nevertheless, slower momentum in economic activity is expected in the coming months, due to increased geopolitical tensions, higher energy prices, and the resumption of student loan repayments.

Facebook Comments