Industrial production in the US fell in may, worse than market indicated. Falling auto production fueled bigger decline in the industrial output marking that US manufacturers may face economic challenges.
Industrial output which includes factories, mines and utilities decreased by 0,4% m/m from April. Additionally, the previous reading was revised downward from 0,7% m/m to 0,6% m/m. The decline was led especially by motor vehicle production which tumbled 4,4%. Production also dropped at electronics, furniture, clothing and chemical factories.
On the other hand, mining production increased by 0,2% helped by a rebound in coal mining. Still the mining sector remains down 11,5% on yearly basis as low oil and energy prices halted drilling in the US. This reading was the last piece of data ahead of FOMC meeting this evening.
source: Macrobond, XTB
The US dollar has not responded to the weaker than expected data, but still loses on daily basis.
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