U.S. Review
Signals of Stronger Growth and Fed Tapering
• Existing home sales rose more than expected in July, but some of the luster was lost from when the new home sales report posted a 13.4 percent drop for the month.
• Minutes from the July FOMC meeting confirmed the timeline for the Fed to begin tapering asset purchases later this year.
• The Leading Economic Index continued to indicate stronger economic growth in the second half of the year. The overall index jumped from a flat reading in June to 0.6 percent in July.
Global Review
Mexican GDP: Fooled by Outsized Expectations
• Almost the entire spectrum of Mexican analysts was caught off-guard with the release of the country’s second-quarter GDP report. In June, our 2013 forecast stood at 1.9 percent. Today, that forecast is just slightly higher at 2.0 percent. Mexican economic weakness has been clear since at least May, when we started to lower our forecast considerably.
• The good news is that this slowdown is likely temporary, and we expect the economy to resume stronger growth soon.
Read the full report: Market Research
Scotiabank