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Service sector confidence decreases in Brazil

May 29, 2019

Confidence across all sectors decreased in the month, which indicate no substantial acceleration in economic activity ahead

Talk of the Day

Brazil

According to FGV’s monthly survey, business confidence in the service sector decreased 3.1 p.p. to 89.0 in May. The breakdown shows a drop both in the expectations component (-5.1 p.p.) and in the current situation index (-0.9 p.p.). Confidence across all sectors decreased in the month, which indicate no substantial acceleration in economic activity ahead, after a disappointing 1Q19.

Day Ahead:  April’s central government primary budget balance will be published at 2:30 PM, for which we forecast a BRL 5.4 billion surplus. At the same time, the Central Bank will release April’s credit report.

Argentina

Day Ahead: The General Confederation of Labor (CGT) called for a 24-hour strike today, to protest against the economic and social policies from Macri's administration. The strike is expected to shut down public transportation, banks and a number of other services. This is the sixth national strike since Macri took office, in 2015.

Mexico

Day Ahead: At 4:00 PM, the Central Bank of Mexico (Banxico) will publish the quarterly inflation report (1Q19), with updates of its macro outlook on the Mexican economy, including revised forecasts for the main variables and probably more guidance on its future policy decisions.



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