Turkey current account posts a surplus for second month in a row: Economic wrap
Turkey current account
The current account of Turkey signed a surplus of $1.7 billion in September, in line with the market estimation, compared to a $2.3 billion deficit in the same month of 2020.
The second straight month of surplus in the current account as the services account surplus widened to $3.7 billion from $1.8 billion 2020, and the gap of goods account dropped to $1.0 billion from $ 3.8 billion.
UK Manufacturing Production
UK factory output increased by 2.8 percent year-on-year in September 2021, missing market expectations of 3.1 percent and indicating the slowest growth in seven months.
Meanwhile, the manufacturing production decreased on a monthly basis to -0.10 percent in September from 0.50 percent in August of 2021
The manufacturing declined 0.1 percent month-on-month, weighed down by contractions in the manufacturing of coke and refined petroleum products, with 28.6 percent remaining below pre-pandemic levels. Downward pressure also came from the manufacture of computers, electronics, and other optical products.
Euro Area Interest Rate
European Central Bank President Christine Lagarde said at a press conference that the medium-term inflation outlook remains weak, and therefore the ECB is unlikely to raise interest rates for the following year.
At its latest monetary policy meeting, the European Central Bank left its monetary policy unchanged and pledged again to keep interest rates at record low levels until inflation rises to the ECB’s 2 percent target by the middle of its forecast horizon and stays there at a low level on a durable basis.
Mexico Industrial Production
Mexico’s industrial production increased by 1.6 percent in September 2021 from a year earlier, slowing from an upwardly revised 5.5 percent increase the previous month and missing market expectations for a rise of 3.9 percent.
The latest reading also indicated the seventh consecutive month of expansion in the industrial sector, although this was at the lowest in the current sequence, as international supply chains face severe disruptions, represented by material shortages and high energy prices.
On a seasonally adjusted monthly basis, industrial production unexpectedly declined 0.4 percent after a revised flat reading in August and compared to market estimates for an increase of 0.1 percent.
Brazil Retail Sales
Brazilian retail sales contracted 1.3 percent from the previous month in September 2021 from an upwardly revised 4.3 percent decline the previous month, missing market expectations for a 0.6 percent decline.
Meanwhile, trade fell to six of the eight categories. A further decrease was noted in goods of household and personal use by -2.2 percent.
Trade-in pharmaceutical, medical and orthopedic products increased. On an annual basis, retail sales fell 5.5 percent, beating market expectations for a 4.3 percent decline.