The Day at a Glance | July 18 2023

*Industrial production in the U.S. fell -0.5% for a second consecutive month.

*Retail sales in the U.S. grew 0.2% m/m (0.5% excluding autos).

*Russia attacked Ukrainian ports one day after withdrawing from the food export agreement.

*China and the U.S. could redefine their relations through cooperation against climate change: John Kerry.

*Heatwaves around the world raise health alerts; record-level temperatures are being reported.

Economic environment

Industrial production in the U.S. recorded a monthly -0.5% setback in June. This reading entails greater deterioration than expected by analysts, who estimated a marginal expansion (0.1% m/m) after a -0.5% m/m decrease m/m was logged in May. By industry, mining recorded a -0.2% m/m contraction, and utilities did the same in -2.6% m/m, while manufacturing production fell by -0.3% m/m, showing a significant slowdown from April’s 1.0% and May’s -0.2%. With this, on an annual basis, the US industrial sector logged a -0.4% setback, with almost all components in negative territory, except for construction, which saw a 0.3% increase, and business equipment, which remained unchanged. Finally, industrial capacity utilization saw a small decrease, dropping from 79.4% in May to 78.9% in June. Overall, June´s figures point out the industrial sector´s current fragile state.