The Day at a Glance | September 28 2020

The Top

· Mexican exports continued to recovery during August.

· Income of industrial companies in China grow for a fourth consecutive month during August (19.6% annual).

· Trump nominates conservative judge Amy Coney Barret to replace Ruth B. Ginsburg in the Supreme Court.

· One million deaths reached because of COVID-19 at a worldwide level.

Economic environment

INEGI figures confirmed a sustained recovery in Mexican imports and exports. Exports grew a monthly 4.88% during August and the contraction at an annual rate was reduced to (-) 7.7% after a 19.86% monthly growth in oil exports (-11.4% annual) and a 4.25% rise in non-oil exports. Imports saw an even greater recovery during the period as they increased 7.01% monthly (-22.2% annual). Imports of consumption goods were the ones that recorded the largest increase (8.04%), which is a sign of a gradual recovery in the domestic market; meanwhile, imports of intermediate gods grew a monthly 7.37% (-20.4% annual) and imported capital goods increased 2.87% (-19.8% annual). The recovery`s strength regarding exports has become more moderate, but imports saw an acceleration in August with respect to July, which is a sign of a firm recovery in domestic demand. Albeit the rise in imports, the trade balance continues to record a surplus close to all-time highs, with 6,496 million dollars in August.