A modest rise in June industrial output
|Summary
A better-than-expected print for June industrial production follows upward revisions to May data. It is not quite a manufacturing renaissance, but it is a modestly brighter assessment than would have been expected against a backdrop of gloomy survey data.
Modest rise thanks in part to a bounce in utilities
Overall industrial production rose 0.3% in June on the heels of an upward revision that lifted May's 0.2% headline decline to an unchanged reading for the month. Relative to the consensus expectation for a scant 0.1% increase, today's print is a modestly encouraging development for a sector that has not felt the wind in its sails for some time.
An expected rebound in utilities output of 2.8% more than offsets a decline of 2.5% in the prior month. Still with just an 11% share of total output, it is not as though the gains in utilities provided a massive lift to the headline. Rather, the growth came from actual manufacturing. A closer look at the underlying details here reflects offsets across different industries, but on balance a less negative reading in the hard data than the contracting signals from various manufacturing surveys might otherwise suggest. The nearby chartsignals how the more recent 3-month annual rate is outperforming the year-over-year, which suggests an uptick in output, if only a mild one.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.