Mexico: After increasing the benchmark interest rates a few times, officials of the Banco de Mexico hope that the inflation rate will slow down. They will miss the target of 3% for the year but hope not to exceed 5%. Lackluster retail sales in June (+1.6%), weak industrial production and an uptick in the unemployment rate signal a slowing economy. The trade deficit for July came in unexpectedly high at US$889 million after a surplus in June.
Canada: The Canadian economy continues to slow down despite fairly good numbers on the domestic consumption side. Exports continue their downturn, registering the fourth consecutive quarterly decline in Q2. Given the weak economy in the US, Canada's largest export market by far, this is hardly surprising. Automotive production is severely down, business investment in new plants and equipment is declining as well (-0.4% in Q2) but personal spending is moderately up (0.6%).
Latest numbers for intra-NAFTA steel shipments show a slower pace for Canadian steel exports to the US. Extrapolated for the year, the first five months of 2008 would be 22% below last year's total of 7.9 million metric tons.
General Data:
GDP |
Consumer Price Index and last year |
Industrial Production |
Unemployment |
Trade Balance past 12 months |
Currency as of August 27 and last year |
|
+2.8% in Q2 |
+5.26% in June (+3.9%) |
-0.5% in June |
4.2% in July |
-$8.2bn, July |
10.1 to USD$1 (11.1) |
|
+0.2%, Q1 |
+3.4%, July (2.2%) |
-4.6%, May |
6.1%, July |
+$47.1 bn, June |
1.05 (1.06) |
Automotive and Steel Production
Total Units in July |
+/- 2007 |
Units Year-to-date |
+/- 2007 |
Steel Prod. in July 000/MT |
+/- 2007 |
Year-to-date 000/MT |
+/- 2007 |
|
147,711 |
-5.7% |
1,202,797 |
+3.55% |
1,640(e) |
+18.7% |
11,157 |
+11.7% |
|
125,846 |
-13.7% |
1,270,623 |
-16.0% |
1,395 |
+24.4% |
9,743 |
+5.6% |
Total Intra-NAFTA Steel Shipments Jan-May 2008 in Thousand Metric Tons
Ttl Intra-NAFTA |
From US |
From Mexico |
From Canada |
|
2,471 |
2,424 |
29 |
- |
|
1,590 |
1,420 |
- |
171 |
|
US |
4,672 |
- |
1,382 |
3,290 |