The Day at a Glance | September 27 2023

*Mexico´s trade balance recorded a lower than expected deficit in August. 

*US Congress has 4 days to fund the government before a partial shutdown occurs.

*Mortgage applications in the US increased 1.3% in the week ending September 22nd.

*Consumer confidence in the UeS, as measured by the Conference Board, dropped from 108.7 points in August to 103.0 in September (105.5 e.).

*Evergrande chairman has been placed under police watch, raising doubts about the future of the Chinese real-estate giant and a potential liquidation.

Economic environment

Mexico´s trade balance logged a deficit worth -$1,377 million USD in August. This figure exceeded the market estimate of -$1,100 million USD and set below the deficit worth -$5,704 million USD logged in the same month of the previous year. The smaller deficit resulted from a -4.3% y/y decrease in imports, which, in turn, can be explained by a -37.1% setback in oil imports and a slight increase in non-oil imports (+0.8% y/y). On the other hand, exports recorded a 3.8% annual increase, which came from a 4.3% increase in non-oil exports and a -4.6% decrease in oil exports. With this, figures for the first eight months of 2023 point to an accumulated deficit worth -$8,602 million USD, which is less than the -$24,741 million USD recorded a year ago.