Eurozone Industrial Production unexpectedly declines 0.2% in May

Sagar Dua FXStreet

The Eurozone industrial sector activity declines by 0.2% in May, while it was expected to rise at the same pace, according to data published by Eurostat. In April, the Industrial Production data rose by 0.3%, revised higher from 0.1%.

On an annualized basis, the industrial output contracts at a faster pace of 1.2% vs. -0.5% estimates. The data expanded 0.4% in April, revised higher from 0.3%.

Market reaction

The Euro (EUR) appears to have shown a muted response to the Eurozone Industrial Production data. At press time, EUR/USD trades calmly near 1.1424.

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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