The Day at a Glance | October 3 2023

*Gross Fixed Investment in Mexico logged monthly (0.5%) and annual (29.5%) growth in July.

*Private consumption figures in Mexico continued recording strong growth in July (4.3%). 

*Mexico received $5,563 million dollars in in remittances in August, the largest amount in a single month. 

*Officials from US Federal Reserve stated that the central bank´s monetary policy should remain on a restrictive path “for a while” to bring inflation to its 2% target.

*Philip Lane, Chief Economist of the ECB, says that wage increases are bolstering inflation.

Economic environment

Gross Fixed Investment in Mexico logged monthly (0.5%) and annual (29.5%) growth in July. The main growth driver was construction (1.9% m/m and 37.2% y/y); more precisely, the non-residential sector (2.2% m/m and 70.9% y/y). Additionally, the machinery and equipment category also maintained a strong annual growth rate, with a 20.3% y/y reading; while double-digit annual growth was logged among imported components (23.1%) and a 17.1% y/y increase was recorded in domestic components. However, on a monthly basis, the machinery and equipment component receded by -0.9% due to declines in imported sub-segments of transportation (-11.3%) and machinery and equipment (-0.3%).  

Private consumption in Mexico recorded 4.3% annual growth in July. On a monthly basis, there was no variation compared to the previous month, thanks to a 0.3% increase in the consumption of goods and services of domestic origin, which offset the -1.1% m/m drop in imported goods. With this, the annual reading indicated that imported goods increased by 19.1%, while goods and services of domestic origin increased by 1.2% y/y with a positive performance in services (3.5% y/y), although consumption of domestic goods fell by -0.8% y/y.