Free Trial

May IP Another Piece Of Evidence For Econ Slowdown

DATA REACT

May's Industrial Production growth of +0.2% was a miss vs +0.4% expected, but that was made up for by a revision to +1.4% for April (from +1.1% prior; though notably March was revised down to 0.4% from 0.9%). All major market groups saw a deceleration, most to 2-month lows.

  • The IP M/M growth was the slowest of the year. And manufacturing output fell by 0.1%, the first contraction since January.
  • Mining was the only major industry group to accelerate (to 1.3% M/M from 1.1%), due to oil and gas: "May was the third consecutive month with gains of more than 1.0 percent in mining; over that period, the index for oil and gas extraction has averaged increases of 2.0 percent per month."
  • Minimal market reaction to the data given that the headline figure was in-line when accounting for revisions. But overall, the report adds another piece of evidence for a slowdown in economic activity going into mid-year, if still shy of recessionary territory.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.