Analysis

The automotive industry is undergoing a broad transformation as electric vehicles (EVs) gain ground alongside traditional internal combustion engine (ICE) vehicles. While both types of vehicles share certain core design and manufacturing principles, they differ significantly in components, manufacturing processes, supply chains, and cost structures. These differences have shaped the evolution of automotive supply networks, investment strategies, and workforce development in distinct ways.

The US Dollar Index, commonly referred to as the DXY, measures the value of the United States dollar relative to a basket of foreign currencies. It is widely used by economists, investors, and policymakers as a reference point to assess the dollar’s performance in global markets. The index is calculated based on a weighted geometric mean of six major world currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. Each of these currencies has a different weight, with the euro carrying the largest share due to its significant role in global trade.

Capital flight refers to the large-scale movement of financial assets or capital out of a country. This transfer typically occurs when investors lose confidence in a nation’s economic stability, currency value, or government policies. While capital can leave a country through legal channels such as foreign direct investment redirection or bank transfers, it can also move illicitly, through unreported transactions designed to bypass capital controls or tax obligations.

The Consumer Price Index (CPI) is one of the most relied-upon metrics for tracking inflation. It represents the average change in prices paid by urban consumers for a specific set of goods and services over time. These items range from food and housing to transportation, medical care, and recreation. The CPI is used not only by policymakers and central banks, but also by investors, businesses, and consumers to understand how inflation affects economic behavior and living costs.

The Purchasing Managers’ Index (PMI) is a key economic indicator that provides insights into the health of the manufacturing and services sectors. Published monthly, the PMI is based on surveys conducted with purchasing managers across industries. These surveys track metrics such as new orders, inventory levels, production, supplier deliveries, and employment. A PMI above 50 typically signals expansion in the sector, while a value below 50 indicates contraction.