FXStreet (Łódź) - Carsten Brzeski from ING comments on the disappointing German Industrial Production numbers released in the European morning, showing a 1.8% month-on-month fall in May, the third consecutive monthly drop.

Key quotes

"German industrial production dropped sharply in May, showing that earlier risk factors like slowing emerging market economies, including China, and geopolitical conflicts do have an impact on the German economy."

"The last time industrial production had dropped for three months in a row was in the summer of 2012."

"The overall level of industrial activity is still strong and the safety net for the German industry, richly filled order books and low inventories, is still boding well for the coming months. However, the stimulus for a further acceleration is currently missing."

"In fact, latest data give the impression that the dichotomy between soft and hard data has returned to Germany. While sentiment indicators, despite recent softening, still point to solid growth, hard data is less encouraging."

"It could take until the third quarter before the dichotomy disappears again. Until then, today’s industrial production data show that the German island of happiness has been brought back to mainland."

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    EUR/USD to Eye July Low on Strong 2Q U.S. GDP Report

  2. Investing

    EUR/USD sells off drastically during Wednesday

  3. Forex News

    US Dollar May Rise as 2Q GDP Data Boosts Fed Rate Speculation

  4. Forex News

    EUR/USD dips to weekly lows near 1.0960

  5. Forex News

    EUR/USD Technical Analysis: Short Trade Setup Established

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!