The Day at a Glance | August 17 2023

*Unemployment claims in the US logged a weekly 11,000 decrease as of August 12th. 

*The Eurozone recorded a trade surplus worth 23 billion euros in June. 

*The Philadelphia FED´s manufacturing index returned to positive territory in August for the first time in thirteen months, with a 12 point reading, its highest level since April of last year.

Economic environment

Unemployment claims in the US dropped to 239,000 in the week ending August 12^th. This figure is lower than both the 250,000 reported the previous week and slightly below the 240,000 expected by the consensus. With this, the four week average reached a one-month high at 234.25, which, although remained low, is higher than what was logged throughout 2022, indicating some weakening in the US labor market. Additionally, ongoing unemployment claims increased by around 32,000, reaching 1.716 million, surpassing the market expectation of 1.7 million and up from the previous figure of 1.684 million, suggesting that individuals in search of employment are still facing some difficulties. 

The Eurozone´s trade balance recorded a surplus worth 23 billion euros in June, surpassing the market’s expected 18.3 billion euro surplus after having reported a marginal deficit (0.3 billion euros) in May. This figure is explained by a significant decrease (-17.4%) in imports to 229.3 billion euros, mainly stemming from a smaller amount of purchased raw materials (-30.3%) and mineral fuels and lubricants (-47.5%). On the other hand, exports increased marginally by 0.3%, reaching 255.3 billion euros, with increases in machinery and transport equipment (+10.7%) and manufactured goods (+3.4%) shipments.