The Day at a Glance | September 2 2021

The Top

*IMEF indicators point out an economic slowdown in Mexico.

*Food prices increased 3.15% in August, according to the FAO (32.9 % annual); wheat (8.8% monthly) and sugar (9.6%) lead the rise.

*Central Bank of Mexico survey reveals expectations of greater inflation in the private sector (6.05% 2021; 3.75% 2022).

*The Bank of international Settlements will start testing digital currencies issued by central banks in Australia, Malaysia, Singapore and South Africa.

*ISM confirms a slowdown in the US manufacturing sector during August (61.1).

Economic environment

Mexico`s economy slowed down during August. Leading economic activity indicators made public by the IMEF recorded a slowdown in Mexico during August. Manufacturing activities fell 0.6 points to 51.3 units and logged a contraction in employment, order deliveries and a slowdown in new orders. The services sector, for its part, was the one that decelerated the most as it logged a 2.2 units decrease with respect to July`s figure, which practically led to a standstill (50.1). Both are barely growing, but services logged their third consecutive month of deceleration. Logistical problems and the scarcity of raw materials at a global level continues to limit growth capacity in the manufacturing sector – in addition to a poor performance in the construction sector. Regarding services, the virus`s new wave has strongly affected economic activities. The analysts` consensus still forecasts growth close to 6% in 2021, but in case the slowdown extends itself in the following months, downwards revisions could start to be carried out.