The Day at a Glance | October 13 2023

*Despite August´s monthly upturn in industrial production in the Eurozone, the industrial sector remains more than 5% lower on an annual basis. 

*In the United States, the import price index recorded moderation in its monthly reading at 0.1% (-0.4pp), resulting in a greater annual contraction of -0.3% (-0.2pp). In contrast, the export price index accelerated to 0.7% m/m (+0.2pp), although its annual reading fell to -4.1% (-0.1pp).

*Israel has called on all civilians in Gaza to evacuate the city in anticipation of a potential ground invasion in response to Hamas terrorist attacks.

*The majority leader in the US House of Representatives, Steve Scalise, abruptly withdrew from the race for leadership of the House, which will delay the process.

Economic environment

Industrial production in the Eurozone showed signs of relief in August, however, the trend continues to point towards a contraction in the 3Q23. In August, the Eurozone´s industrial sector logged a monthly 0.6% increase, rebounding from July´s -1.3% m/m setback. The most recent reading exceeded the market´s 0.2% m/m expected figure and is the highest since April. This performance was led by the production of durable goods, which increased 1.2% m/m, breaking its four-month streak of negative figures. Similarly, the production of capital goods returned to positive territory (0.3% m/m vs -3.1% m/m), while the production of non-durable goods maintained its pace (0.5% m/m). However, energy production and intermediate goods recorded -0.9% m/m and -0.3% m/m setbacks. Despite the mid third quarter recovery that provides some relief, annual figures continue to show significant year on year contractions in all sectors. All in all, industrial production has remained in negative territory for six consecutive months, with a -5.1% y/y reading, its worst performance since September 2020.