Monday, June 23
Mexican Economy Recovers in April: IGAE
In April, Mexico’s economy showed a recovery with a monthly growth of 0.5% in the Indicator Global of Economic Activity (IGAE), primarily driven by the tertiary sector. However, weakness signals persist in primary and secondary sectors.
Retail Sales Stumble in April
Mexico’s retail sales recorded a monthly drop in April, ending a five-month streak of growth and reflecting lower consumer spending internal dynamics.
Tuesday, June 24
Inflation in Mexico Slows Down
Mexico’s inflation showed a deceleration during the first half of June, with an annual variation of 4.51%, influenced by a decrease in agri-food and energy product prices.
Value of Construction Companies’ Production Drops 0.1% in April
In April, the value of production generated by construction companies had a slight monthly decline of 0.1%, reflecting moderation in sector activity during that period.
Wednesday, June 25
New Home Sales in the United States
New home sales in the United States fell 11.3% in May, affected by rising mortgage financing costs, leading to their lowest level since November 2023.
Thursday, June 26
Banxico Cuts Interest Rate
The Bank of Mexico reduced its reference rate by 50 basis points, arguing that macroeconomic conditions allow for continued monetary policy relaxation while keeping an eye on inflation risks.
Initial Unemployment Benefit Applications Decline
Initial applications for unemployment benefits in the United States showed a weekly decrease, suggesting that the labor market remains robust despite uncertain economic conditions.
Friday, June 27
Labor Informality Reaches Highest Level in 18 Months
Labor informality in Mexico reached its highest level in a year and a half, reflecting an increase in the number of people employed outside legal frameworks with limited access to labor benefits.
Key Questions and Answers
- What was the growth rate of Mexico’s economy in April according to IGAE? The growth rate was 0.5%.
- Which sectors contributed to Mexico’s economic recovery in April? The tertiary sector was the main driver of growth.
- What caused the decline in Mexico’s retail sales in April? Lower consumer spending dynamics led to the monthly drop.
- What factors influenced Mexico’s inflation slowdown in June? Decreased prices of agri-food and energy products played a role.
- Why did new home sales in the US fall in May? Rising mortgage financing costs were the main reason.
- How did Banxico justify its interest rate cut? Macroeconomic conditions allowed for continued monetary policy relaxation while monitoring inflation risks.
- What does the decrease in initial unemployment benefit applications suggest about the US labor market? The labor market remains robust despite uncertain economic conditions.
- What does the rise in labor informality in Mexico indicate? An increase in people working outside legal frameworks with limited access to labor benefits.
