The Day at a Glance | June 14 2023

*Industrial production in the Eurozone recovered during April. 

*The producer price index in the United States slowed down more than expected. 

*Real hourly wages in the US recorded a 0.2% increase in May after falling -0.6% in April. 

*The Federal Open Market Committee will announce its monetary policy decision today at 12:000 pm (Mexico City time). We expect it to keep the federal funds rate at 5.25%. 

*The Central Bank of Mexico will release its Financial Stability report this Wednesday. 

Economic environment

Production in the Eurozone recorded a significant rebound in April; it logged a 1.0% monthly figure. This came after a -3.8% decline was recorded in March. Its recovery was boosted by increased production of capital goods, which increased 14.7% m/m, and by electricity generation, which hiked 1.0%. However, the three-month moving average remained in contractionary territory by recording a -0.9% figure, while the year on year variation, although returning to positive territory, set at 0.2% y/y. Overall, this points to a recent weakening in industrial activity in the Eurozone. 

Producer prices in the United States recorded a -0.3% monthly contraction in May. The monthly decline was driven by lower prices in energy (-6.8% m/m) and goods (-1.6% m/m). Additionally, it´s worth noting that service prices showed marginal moderation as they logged a 0.2% m/m figure. As a result, the annual reading set at 1.1%, lower than the consensus estimate of 1.5% y/y and down from the previous 2.3% y/y.