Eurozone Industrial Production contracts 0.1% in July

Sagar Dua FXStreet

The Eurozone industrial sector activity declines 0.1% in July, according to data published by Eurostat. The industrial output was expected to decline but at a faster pace of 0.2%. In June, the data also contracted by 0.1%, revised lower from 0%.

On an annualized basis, industrial output remained flat.The data was expected to decline at a 0.1% pace, slower than the previous reading of 0.3%, revised lower from +0.1%.

Market reaction

There is slight increase in the Euro (EUR) against the US Dollar (USD), following the Eurozone Industrial Production data release. However, the reaction appears to be coming on the back of a slight drop in the US Dollar. As of writing, EUR/USD trades almost flat at around 1.1545.

Economic Indicator

Industrial Production s.a. (MoM)

The Industrial Production index, released by Eurostat on a monthly basis, measures changes in the price-adjusted output of industry. It is a widely-followed indicator to gauge the strength in the Eurozone’s manufacturing sector. Generally, a high reading is seen as bullish for the Euro (EUR), while a low reading is seen as bearish.

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