US: Industrial Production declines by 0.2% in June vs. +0.1% expected

• Industrial Production in the US unexpectedly contracted in June.
• US Dollar Index stays in negative territory below 108.50.

Industrial Production in the US contracted by 0.2% on a monthly basis in June, the US Federal Reserve reported on Friday. This reading came in weaker than the market expectation for an expansion of 0.1%.

"Manufacturing output declined 0.5% for a second consecutive month in June; even so, it rose at an annual rate of 4.2% in the second quarter," the Fed further added in its press release. "Capacity utilization decreased 0.3 percentage point in June to 80.0%, a rate that is 0.4 percentage point above its long-run (1972–2021) average."

Market reaction

The US Dollar Index stays in negative territory at around 108.20 after this report.