News

Eurozone Industrial Production falls by 1% in May vs. -0.2% expected

Eurozone’s Industrial Production in Germany showed a bigger-than-expected drop in May, the official data published by Eurostat showed on Wednesday, suggesting that the recovery in the manufacturing sector is losing momentum yet again.

The industrial output in the bloc arrived at -1.0% MoM vs. a 0.2% drop expected and 0.6% last.

On an annualized basis, the industrial output jumped by 20.5% in May versus a 22.2% increase expected and April’s 39.4%.

FX implications

The shared currency defends the bid tone after downbeat industrial figures, little affected by the data.

At the time of writing, EUR/USD gains 0.06% on the day to now trade at 1.1780, supported by a pullback in the US dollar across the board. Powell’s testimony and US PPI in focus.

About Eurozone Industrial Production

Industrial Production is released by Eurostat. It shows the volume of production of Industries such as factories and manufacturing. Uptrend is regarded as inflationary which may anticipate interest rates to rise. Usually, if high industrial production growth comes out, this may generate a positive sentiment (or bullish) for the EUR, while low industrial production is seen as a negative sentiment (or bearish).

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