US industrial production well below expectations

Industrial production in the US decreased to -0.2% in June, after downwardly revised 0.0% MoM in May and missing market consensus of a 0.1% MoM advance. Manufacturing output declined 0.5% for a second consecutive month with decreases for durable and nondurable manufacturing of 0.3% and 0.8%, respectively. Within durable manufacturing, declines of more than 1.0%in primary metals, machinery, and motor vehicles and parts outweighed gains of more than 1.0% in miscellaneous manufacturing and in electrical equipment, appliances, and components. Within nondurable manufacturing, every group except for two posted a decline of at least 0.8%; apparel and leather recorded a gain of 2.5%, while chemicals registered a dip of 0.1%. At the same time, the index for mining advanced 1.7%, while the index for utilities fell 1.4%.

On the annual basis industrial production decreased to 4.2% in July from 5.4% in May.

US500 rose slightly after industrial production data release. The index is approaching resistance zone at 3,885 pts. Source: xStation5