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Peru’s political crisis, dire surveys in Mexico

The political turmoil that erupted in Peru earlier this week now seems to be fizzling out, supporting our view that it will have a limited impact on the economy. Elsewhere, we suspect that the Mexican manufacturing surveys released on Tuesday overstate the actual weakness in the sector. Even so, it’s clear that manufacturing activity will remain soft. Finally, the surge in Brazilian oil output in the last few months probably added about 0.2%-pts to GDP growth in Q3. This boost is likely to continue into 2020.

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