Overview
This week, several crucial economic indicators will be released in Mexico and the United States. These reports cover private consumption, manufacturing performance, and preliminary data on monthly economic activity in Mexico. Meanwhile, the US will publish inflation and retail sales data.
Tuesday, July 15: US Inflation
Results of Government Securities Auction:
- The Bank of Mexico will announce the results of the government securities auction, revealing interest rates and amounts for debt issuance to investors.
- US Inflation (June): The Consumer Price Index measures the general increase in prices for goods and services consumed by households in the world’s largest economy. It helps anticipate Federal Reserve decisions and has global implications, affecting living costs, financing prices, and investment flows to emerging countries.
Wednesday, July 16: Private Consumption and Manufacturing
Leading Index of Private Consumption (June):
- This early estimate of private consumption in Mexico is crucial, as consumption drives the national economy. It provides early insights into household spending dynamics and short-term GDP behavior.
- Monthly Manufacturing Industry Survey: This survey offers insights into the manufacturing sector’s performance by providing data on production, employment, occupied personnel, and wages. It is vital as the sector supports the Mexican economy and can signal upcoming economic cycle changes.
- US Producer Prices (June): This indicator measures the price variations faced by US producers before reaching the final consumer. It offers early signals for potential future inflationary pressures, influencing consumer prices and monetary policy expectations.
- UK Inflation (June): Similar to the US, UK inflation data helps assess price stability and informs monetary policy decisions.
Thursday, July 17: US Retail Sales
US Retail Sales (June):
- These figures reflect consumer spending on goods and services in the US, a key indicator of the health of the world’s largest economy. Variations impact expectations for economic growth, interest rates, and global financial markets.
- New US Unemployment Benefit Applications: This data shows the number of individuals seeking unemployment assistance for the first time in the US. It is a crucial gauge of employment strength, influencing monetary policy as the Fed balances price stability and full employment.
- Eurozone Inflation (June): Eurozone inflation data helps assess price stability and informs monetary policy decisions.
Friday, July 18: Monthly Economic Activity
Leading Indicator of Economic Activity (June):
- The Leading Indicator of Economic Activity is an early estimate published by INEGI to anticipate the Indicador Global de la Actividad Económica (IGAE). Its significance lies in providing an early signal about the overall economic performance of the country, aiding public policy decisions, financial analysis, and business planning.
Key Questions and Answers
- What are the key economic indicators being released this week? This week, Mexico will release data on private consumption, manufacturing performance, and preliminary economic activity. The US will publish inflation and retail sales data.
- Why are these indicators important? These indicators provide insights into consumer spending, manufacturing sector performance, and overall economic health. They help anticipate GDP behavior, inform monetary policy decisions, and assess price stability.
- How do these indicators impact global markets? These indicators significantly influence living costs, financing prices, and investment flows to emerging countries. They also impact expectations for economic growth, interest rates, and global financial markets.
