The Day at a Glance | September 5 2023

*Mexico´s consumer confidence indicator for August reached its highest level since March 2019.

*Producer inflation in the Eurozone fell by -7.6% y/y due to a significant decrease in energy prices.

*In August, domestic vehicle sales in Mexico set at 113,873. In the January-August period, a total of 857,803 units were sold.

*The INEGI´s Timely Indicator of Manufacturing Activity (IMOAM for its acronym in Spanish) suggests that the manufacturing sector may have grown by 0.2% on an annual basis in July.

*Country Garden avoided another default in China, bringing relief to the real-estate sector.

*The US Senate races ahead of House on spending bills, aiming to prevent a government shutdown in October.

Economic environment

Mexico´s consumer confidence indicator increased for a fourth consecutive month in August and reached its highest level since March 2019 at 46.7 points (46.2 prev.). There were monthly increases in all five components, and the highest level was recorded in the expected economic situation of household members within 12 months compared to the current situation, with a 0.1 point improvement to 58.0 points. However, the economic situation of the country today compared to 12 months ago recorded the largest increase, rising by 1.1 points to 44.0. In annual terms, all five components logged an average increase of 5.9 points, with particular emphasis on the 7.3 point increases in the categories covering the current ability of household members to purchase furniture, televisions, etc., compared to a year ago, and the 7.4 point increase in the current economic situation of the country compared to 12 months ago.

Producer inflation in the Eurozone fell by -7.6% y/y due to a significant decrease in energy prices. On a monthly basis, producer prices in the Eurozone decreased by -0.5% (-0.4% prev.). Intermediate goods decreased by -1.2%, and energy prices decreased by -0.9%, while capital goods increased marginally (0.2%). On an annual basis, producer inflation decreased for the third consecutive month, largely due to a -24.2% decrease in energy prices. By country, the largest price drops were recorded in Ireland (-39.5%), Italy (-13.8%), and the Netherlands (-13.4%).