Experts forecast plunge in Mexico’s industrial activity

Experts forecast a plunge in Mexico’s industrial activity for the first time in the past six months. The National Institute of Statistics and Geography (INEGI) will present their report at 08:00 hours and analysts consulted by Reuters deem that the industry sector , which constitutes one-third of the Mexican economy , contracted 0.5% in March , in comparison to February 2018.

If this proves true, it would represent the first monthly descent since September of last year, when it was reduced by 0.5%.

The forecasts are disperse, since HSBC predicts a plunge of 4.2% , while J.P. Morgan predicts a 0.4% growth. Citi-Banamex points to a 1% descent while Banorte expects no change , and the Bank of America foresees an increase of 0.2% in March.

In the United States , the Institute for Social Research at the University of Michigan will publish their preliminary consumer confidence index at around 09:00 hours, central time. Their index is related directly to the spending power of the American people.

Experts forecast a level of 98.5 points in the month of May which, should it be confirmed, would represent the lowest level since last January , when it showed 95.7 units.

They argue that lower confidence in consumers would be the result of their fear for higher interest rates in the United States , given inflationary pressures.

Predictions go from 95.5 points , estimated by the French bank Société Générale , to a 100 unit increase , forecast by the American financial institution Amherst Pierpont .

Citigroup

anticipates a level of 96.4 ; Bank of America, 97 ; and J.P. Morgan, 98.5 , according to a survey conducted by Reuters.

Baker Hughes company

will inform on the number of oil platforms in the United States at 12:00 hours, after showing a number of 834 active oil wells on May 4 , their highest number since mid-March, 2015.

At 07:30 hours, James Bullard , chief executive of the Federal Reserve Bank of St. Louis , is scheduled to make a public appearance, although he won’t have a vote on interest rates.

Mario Draghi

, head executive of the European Central Bank , is expected to give a speech at 08:15 hours.

In Brazil , data of retail sales will be presented at 07:00 hours, from which analysts estimate a rise of 0.3% in March in respect of the preceding month when it showed a 0.2% decrease .

Spain

’s inflation reports, as well as reports on India ’s industrial activity, were presented this morning.

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