The Day at a Glance | August 23 2023

*The Eurozone´s services PMI fell into contractionary territory for the first time this year in August; the manufacturing indicator improved, but remains in contractionary territory.

*Negative surprises in US PMI´s. The manufacturing indicator fell to 47.0 points, while the services indicator retreated to 51.0.

*Tonight, eight Republican candidates will participate in the first debate of the presidential process. The event will take place in Milwaukee, Wisconsin, at 7:00 pm (Mexico City time). The event will be marked by the absence of the leading candidate, former President Donald Trump, who recorded an interview that will be broadcasted at the same time as the presidential debate.

*According to data from the Mortgage Bankers Association, the number of mortgage applications in the US dropped by -4.2% w/w in the week ending August 18th.

Economic environment

Eurozone PMI´s point to further deterioration during August. The services indicator fell below the 50-point threshold for the first time this year, decreasing by 2.6 points compared to the previous month, and setting at 48.3. This is its lowest reading since February 2021 and stands below the market´s expected 50.5. Meanwhile, the manufacturing index increased by 1.0 point in its August reading, setting at 43.7 units, surpassing the analysts’ forecasted 42.7. With this, the composite index dropped to its lowest level since November 2020, recording 47.0 points.