Industrial Production in Germany rose less than expected in May, the official data showed on Thursday, suggesting that the manufacturing sector activity is losing its recovery momentum.
Eurozone’s economic powerhouse’s industrial output increased by 0.2% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.4% expected and 0.7% last.
On an annualized basis, German industrial production dropped 1.5% in May versus a -2.2-decline booked previously. The market consensus was for a drop of 3.3%.
FX implications
The shared currency is trading strongly bid just above 1.0200 on the mixed German industrial figures.
At the time of writing, EUR/USD is trading at 1.0205, up 0.28% on the day.
About German Industrial Production
The Industrial Production released by the Statistisches Bundesamt Deutschland measures outputs of the German factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).
