Economics: June data provides another mixed portrait closely in line with that of the previous month
Economic data released in June once again showed increased activity, although with markedly uneven results depending on the sector or branch in question. At the same time, public finance evolved relatively favorably in several revenue categories, and public spending remained stable and contained, however, such a trajectory may be unsustainable given the trend toward an expansion of the public deficit.
In April industrial activity improved on its average year to date with all four components in the black, led higher by robust manufacturing results. Manufacturing, the only GDP component to boast a significant recovery so far, recorded by far the strongest expansion of any industrial component for the month, but it is precisely factory output where we foresee the potential for problems in the coming months given the extent to which US economic growth forecasts are being scaled back.
In the week’s economic news, labor market and public finance data for May were largely in keeping with the trends of recent months, while the month’s trade report showed that for the first five months of the year, Mexico accumulated a trade deficit of almost nine billion dollars in sharp contrast to the 660 million dollar surplus of the same period of 2021.
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