The Day at a Glance | July 13 2023

*Chinese foreign trade decreased more than expected in June. 

*May´s industrial production figures in the Eurozone disappointed as they logged further deterioration. 

*Producer inflation in the United States rebounded less than expected (0.2% m/m and 0.4% y/y) in June, with a monthly 0.1% figure after having recorded a -0.4% m/m decrease in May. Meanwhile, the core component recorded a 0.1% m/m figure for a second consecutive month. With this, the annual reading for producer inflation set at 0.1%. 

*Unemployment insurance claims in the United States dropped to 237,000 in the week ending July 8th, down from a previously recorded 249,000 and below the 250,000 market forecast. As a result, the four week average set at 246,750 requests, its lowest level in five weeks.

Economic environment

China’s trade balance recorded a $70.62 billion dollar surplus in June. This figure is lower than the $97.41 billion seen in the same period last year and below the consensus expectation of $74.8 billion. Both exports and imports surprised negatively with even greater year on year contractions than those seen in the previous month: -12.4% and -6.8% respectively.

Industrial production in the Eurozone increased a moderate 0.2% m/m in May, slowing down from its previous 1.0% figure. A 1.0% m/m increase was logged in the production of capital goods – a significant slowdown after it logged a 14.7% m/m hike in April; for their part, intermediate goods logged recovery with a 0.5% m/m figure after having dropped -0.9% m/m the previous month. With this, the Eurozone´s industrial production recorded a 2.2% annual decrease.