Industrial Production in Germany unexpectedly fell in May, the official data showed on Wednesday, suggesting that the recovery in the manufacturing sector is losing momentum.
Eurozone’s economic powerhouse’s industrial output dropped by 0.3% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.5% rise expected and -1.0% last.
On an annualized basis, the German industrial production jumped by 17.3% in May versus 34.5% expected and a 27.6% growth reported in April.
FX implications
The shared currency eases slightly on downbeat German industrial figures.
At the time of writing, EUR/USD is trading at 1.1826, almost unchanged on the day, having hit daily highs at 1.1834 pre-data release.
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).
