Throughout this week, Mexico will publish August inflation reports, vehicle and heavy-duty vehicle sales, the trade balance, and industrial activity. Abroad, the monetary policy decision of the European Central Bank (ECB) and the U.S. consumer and producer price reports stand out.
Below are the main economic indicators for the week:
Monday, September 7: Vehicle Sales
- Automotive industry registration of light vehicles (August)
- Number of workers affiliated with the IMSS
The week in economic indicators begins with the Administrative Registry of the Automotive Industry of Light Vehicles for August, published by Inegi. This report will show sales by brand and model in the domestic market and provides a signal regarding the consumption of durable goods.
On Monday, figures for workers affiliated with the Mexican Social Security Institute (IMSS) will also be published. This report will provide information on the creation or loss of formal jobs during the past month, as well as the evolution of the labor market and registered wages in the country.
Tuesday, September 8: Securities Auction
- Results of the government securities auction
As every Tuesday, the Bank of Mexico will release the results of the government securities auction. The figures will provide information on market demand for Cetes, M Bonds, and Udibonos, as well as signals regarding expectations for the future of local interest rates.
Wednesday, September 9: Inflation in Mexico
- National Consumer Price Index (August)
- National Producer Price Index (August)
- Administrative Registry of the Automotive Industry of Heavy Vehicles (August)
Midweek, Inegi will release the National Consumer Price Index for August, with its monthly and annual variations, both overall and core. The report will make it possible to assess the evolution of inflationary pressures in Mexico and their implications for upcoming decisions by the central bank.
The National Producer Price Index for August will also be published. The indicator will show the evolution of prices for goods and services produced in Mexico, making it possible to identify cost pressures that could eventually be passed on to consumers and increase inflation.
The Administrative Registry of the Automotive Industry of Heavy Vehicles for August will also be released. Preliminary figures will show the performance of production, sales, and exports, making it possible to assess the evolution of this industry and domestic and external demand.
Thursday, September 10: Trade Balance
- Mexico’s merchandise trade balance (July)
- U.S. Producer Price Index (August)
- New U.S. unemployment benefit claims
- Crude oil inventories from the EIA
- ECB monetary policy decision and press conference
On Thursday, the revised figures for Mexico’s July merchandise trade balance will be released. The report will detail the performance of exports and imports, as well as the trade balance, and will make it possible to assess the evolution of external demand and the country’s trade in goods.
In the United States, the Producer Price Index for August will be published. The report will provide information on the evolution of prices received by producers and help detect pressures at early stages of the production chain, before they may eventually be passed on to consumers.
As every week, the United States will release figures for new unemployment benefit claims. This indicator provides a timely reading of labor market conditions and makes it possible to identify changes in layoffs and the strength of employment within the world’s largest economy.
In addition, the U.S. Energy Information Administration will publish weekly crude oil inventory figures. These data will provide information on the balance between supply and demand in the U.S. market and often influence international crude oil prices.
The European Central Bank (ECB) will announce its monetary policy decision and hold a press conference. The messages will be relevant for understanding its assessment of inflation and economic activity, as well as the outlook for interest rates, in a complex context.
Friday, September 11: Inflation in the U.S.
- Monthly Indicator of Industrial Activity (July)
- U.S. inflation (August)
On Friday, Inegi will publish the Monthly Indicator of Industrial Activity for July. Preliminary figures will provide information on the performance of mining, construction, manufacturing, and energy generation, offering a reading on the recent evolution of Mexico’s industrial sector.
The key report of the week will be the Consumer Price Index for August in the United States, including its monthly and annual variations, as well as the core component. The figures will be relevant amid increased bets on a rate hike by the Federal Reserve.
Source: eleconomista
