German Industrial Production (AUG)
Actual: 1.7% 5.1%
Expected: 0.5% 3.8%
Previous: 0.2% (R+) 4.7% (R+)
Factory activity in Europe's largest economy accelerated faster than expected through August. Economists had forecasted a modest 0.5 percent updraft in factory activity through the period after the ECB pulled back on the monetary policy reigns and the euro pulled back to from highs. When the 1.7 percent print crossed the wires, it was clear the rebound in production was stronger than initially expected. The annual figure similarly outpaced its own consensus by advancing to a 5.1 percent pace versus the 3.8 percent benchmark. The improvement in the year over year figure was the first in three months. However, both readings are not blowout numbers. The monthly figure, while stong, is only the biggest increase in three months; and the annual figure touched its own two month high. The breakdown offers strong numbers to work with. The manufacturing and mining component grew 1.8 percent, following a tepid 0.2 percent pickup in July, thanks to a considerable 4.1 percent jump in production of consumer goods. The construction sector saw its own 2.0 percent improvement while the energy figure barely nudged higher in a 0.3 percent increase.
The factory report clearly roused euro interest in the market. In the minutes after the release, EURUSD jumped 15 points towards a retest of intraday resistance seen at 1.4050.By: DailyFX