Home›Forex›Central Banks›Euro zone industrial output declines in May, missing e…

Euro zone industrial output declines in May, missing expectations

May industrial production fell 0.2% month over month, and Ireland posted a 5.2% drop, while ECB policy is still expected to stay unchanged in July as markets price September action.

Reported · Written up by our desk · Central Banks

Euro area industrial production fell in May, coming in at -0.2% month over month versus a +0.2% gain expected, according to Forexlive. The prior reading was revised to +0.3% from +0.1%, underscoring how the latest data missed forecasts.

Country details showed a sizable downturn in Ireland, where industrial output dropped 5.2% in May. Forexlive noted the decline may look even worse when excluding energy production, and it pointed to earlier volatility in Ireland linked to pharmaceutical and technology activity.

The publication said the data is lagging and is unlikely to alter the ECB outlook. Forexlive added that the ECB is expected to keep policy unchanged in July, while market pricing is shifting toward further tightening later, with a 25 basis point rate hike fully priced for September and about 42 basis points of hikes expected by year end.

More like this

Sources