The Day at a Glance | June 23 2023

*The Eurozone´s PMIs surprised to the downside in June as they recorded declines compared to the previous month´s readings. 

*US PMI´s also recorded monthly deterioration in June: The manufacturing index dropped -2.1 points from the previous figure and set at 46.3 points, below the forecasted 48.5 points. Meanwhile, the services index decreased by -0.1 points, reaching 54.1 points, just slightly above the analysts´ consensus forecast of 54.0. 

*The United States´ leading indicator recorded a -0.7% contraction in May, reaching 106.7 points. With this, over the past six months, the leading indicator has declined by -4.3%, indicating a larger contraction compared to the previous semester (-3.8%). 

*Sales of previously owned homes in the US showed a greater than expected improvement (-0.7% m/m e.) in May, with a 0.2% m/m increase, equivalent to 4.3 million units, after a -3.2% decline was logged in April. 

*The Kansas City Federal Reserve´s manufacturing index logged further deterioration in June and fell to -10 points. 

Economic environment

The Eurozone´s Composite PMI Index fell to its lowest level so far this year (50.3 points). This decline is attributed to the services index moving forward at its slowest pace in five months, and setting at 52.4 points (-1.7), falling short of the market´s forecasted 54.4 points. Additionally, there was a greater contraction in manufacturing, with its index reaching 43.6 points (-1.2), marking its twelfth consecutive month of contraction and its lowest reading in three years. It´s worth pointing out that the gap between both sectors has remained wide for several months, which indicates that disparity prevails in the European economy. Additionally, the most recent PMI´s show that inflationary pressures have eased as the economic slowdown in the Eurozone has materialized.