Weekly Economic & Financial Commentary

U.S. Review
Economic Acceleration But Restraint Persists
• The economy continues to show signs of acceleration this week, with the ISM Manufacturing Index jumping to its highest level since December 2005.
• Factory orders rebounded in June, confirming recent reports of a stronger manufacturing sector. The report suggests that business spending has picked up and should remain strong, as unfilled orders pile up.
• On the downside, nonfarm productivity growth in Q2 could not make up for the steep fall in the prior quarter, while revolving consumer credit growth has remained modest.

Global Review

Historic Day for the Mexican Petroleum Sector
• President Peña Nieto, the leading PRI figure, has been able to partially undo something that was thought to be taboo and impossible only several years ago. Just from this point of view the transformation of the Mexican energy sector, even if imperfect, will give the Mexican economy new degrees of freedom to move forward on its path from a developing to a developed economy.
• Sluggish growth in Europe and Latin America continued according to the latest data releases.

Read the full report: Economic Research