| Consensus | Actual | Previous | |
|---|---|---|---|
| Month over Month | -0.2% | 0.5% | 0.5% |
| Year over Year | -2.6% | -3.3% |
Highlights
Industrial production rose 0.5 percent in June to match May's gain. Despite steady monthly strength, the year-over-year comparison reveals a persistent decline, although the rate of contraction has slowed. Industrial production was down 2.6 percent year-over-year in June, an improvement from the 3.3 percent decline recorded in May.
This deceleration in the annual decline suggests that while the industrial sector is still grappling with challenges, there are signs of gradual recovery. The unchanged month-over-month production indicates a plateau in the sector's output, potentially hinting at stabilization after periods of volatility.
In summary, the industrial sector shows resilience with steady month-over-month production and a slower year-over-year decline, suggesting cautious optimism for future recovery. The stable positive outlook on the monthly indices has provided positive expectations about the economy as the RPI edged upwards to 32, while the RPI-P rose to 25.
This deceleration in the annual decline suggests that while the industrial sector is still grappling with challenges, there are signs of gradual recovery. The unchanged month-over-month production indicates a plateau in the sector's output, potentially hinting at stabilization after periods of volatility.
In summary, the industrial sector shows resilience with steady month-over-month production and a slower year-over-year decline, suggesting cautious optimism for future recovery. The stable positive outlook on the monthly indices has provided positive expectations about the economy as the RPI edged upwards to 32, while the RPI-P rose to 25.
Market Consensus Before Announcement
Production is expected to fall 0.2 percent on the month after a 0.5 percent rise in May.
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Construction is excluded. Approximately 4,100 companies provide data on more than 8,000 monthly flows of production.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
