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Mexico unemployment rate 2.88% in Jul-23

- Mexico's unemployment rate for July 2023 was 2.88%, reaching the highest level since May 2023.
- Despite the increase, the current unemployment rate remains below the one-year average by 0.07% and is 1.06% lower than the long-run average.

Mexico retail sales 118.84% m-o-m in Jun-23

- Mexico's retail sales experienced a remarkable month-on-month increase of 118.84% in June 2023, surpassing the previous month's figure.
- The retail sales growth in June 2023 was 2.98 pp above the one-year average and an impressive 22.98 pp above the long-run average, indicating a strong rebound in consumer demand and exceptional retail activity levels.

Mexico industrial production 3.59% y-o-y (consensus 2.8) in Jun-23

- Mexico's industrial production in June 2023 grew by 3.59% year-on-year, surpassing market expectations and marking the highest growth since September 2022.
- The growth in industrial production exceeded both the one-year average and the long-run average, indicating a strong recovery and potential acceleration in the sector.

Banco de México: Aug-23

• Global inflation remains high, prompting major central banks like the US Federal Reserve and the European Central Bank to adjust their rates, indicating a shift in global monetary policy.
• While Mexico's economy exhibits growth and resilience, challenges persist with annual headline and core inflation rates hovering above the target, emphasizing the complexities in achieving the 3% target by 2024.
• Banco de México’s decision to hold the interest rate reflects a commitment to inflationary control. However, given the uncertain inflationary outlook and multiple potential risks, maintaining the current reference rate for an extended period appears to be the central bank's strategic choice.