Industrial Production in Germany surprised markets to the downside in June, the official data showed on Friday, suggesting that the recovery in the manufacturing sector is dwindling.
Eurozone’s economic powerhouse’s industrial output unexpectedly fell by 1.3% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.5% rise expected and -0.8% last.
On an annualized basis, the German industrial production rose by 5.1% in June versus 11% expected and a 16.6% growth reported in May.
FX implications
The shared currency shrugs off downbeat German industrial figures.
At the time of writing, EUR/USD is trading at 1.1823, almost unchanged on the day, wavering in an extremely tight range ahead of the all-important US NFP 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).
