Peso falls amid fears of judicial reform
Amid renewed concerns over the controversial proposal to reform the judiciary and growing nervousness about a possible recession in the United States, among other national and international factors, the Mexican peso has depreciated more than 3 percent so far in August.
Construction contracts in June
In June, within the Monthly Indicator of Industrial Activity (IMAI), the construction component was the one with the worst result, with a monthly contraction of 2.35 percent, followed by mining, with 1.97 percent, and the distribution of electric energy and supply of water and gas to the final consumer, with 0.10 percent.
Consumer confidence suffers setback
After showing favorable variations, the Consumer Confidence Indicator (ICC) registered a decrease in July, with all its components experiencing declines, led by the item related to the expected economic condition of the country in one year compared to the current one.
They have their first sales since the pandemic
Retail sales revenue from the supply of goods and services in the country fell by 0.50 percent in July. Considering the entire first half of the year, retail sales accumulated a 0.33 percent annual decline, the first drop in four years, after the one recorded by the impact of Covid-19.
Economic activity declines in July
After advancing 0.75 percent in May and 0.09 percent in June, the Timely Indicator of Economic Activity (IOAE) showed a decrease of 0.13 percent in July. The two sectors that comprise it, that is, secondary activities (industrial sector) and tertiary activities (services), had negative variations.
Household spending declines
The Timely Indicator of Private Consumption (IOCP) decreased by 0.08 percent during July. This indicator shows estimates of the Monthly Indicator of Private Consumption of the Domestic Market (IMCPMI), which in turn measures the behavior of household spending on goods and services of national and imported origin.
Factory jobs suffer first drop in 4 years
In June, total employment in the country’s manufacturing industry registered a slight decline of 0.06 percent. However, if the cumulative total for the first half of the year is taken into account, the number of employed personnel decreased by 1.82 percent compared to the same period in 2023, which meant its first negative variation and result in four years.
Inflationary pressures persist
The National Consumer Price Index (INPC) rose 1.05 percent in July on a monthly basis, above market expectations of 1.02 percent. On an annual basis, general inflation rose for the fifth consecutive month, reaching 5.57 percent in the seventh month of the year, its highest level in 14 months.
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