The Day at a Glance | July 14 2023

*The Eurozone´s trade deficit logged a significant contraction in May due to slower momentum in foreign trade. 

*In the United States, the import price index recorded a monthly -0.2% contraction, setting the annual reading at -6.1%. On the other hand, the export price index fell -0.9% m/m, bringing the annual figure to 12.0%. 

*The INEGI´s monthly manufacturing industry survey (EMIM for its initials in Spanish) indicates that employment in the sector increased by 0.3% m/m in May. 

*During his trip to Europe, US President Joe Biden said that Russia´s Vladimir Putin “has already lost the war” in Ukraine, adding that “there is no possibility of him winning the war.”

Economic environment

In May, the Eurozone´s trade balance set at €-0.3 billion euros  compared to €-30.3 billion euros a year ago. There was a -13% y/y contraction in imports, while exports decreased -2.0% y/y. With this, accumulated figures so far this year point towards a deficit worth -17.6 billion euros, compared to -124.7 billion euros a year ago, a contraction explained by a -5.0% y/y drop in accumulated imports between January and May of this year compared to the same period last year; while exports have increased by 4.0%. Additionally, intra-block trade fell by -6.0% y/y in May, although it remains 2.0% y/y higher in the accumulated period.