United States Industrial production data was released today by the Federal Reserve, showing an increase of 0.2 percent in September as expected, just barely growing from August, which was flat.
The index shows the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities. Any increase is a good sign that manufacturers are contributing to growth.
Prior to the Industrial Production data, the Empire State Manufacturing Index was released showing that manufacturing in the New York region contracted in October at a faster pace than forecast, reflecting a lack of confidence in the U.S. recovery that failed to be confirmed by measures of orders and sales.
The Federal Reserve Bank of New York’s general economic index rose to minus 8.5 from minus 8.8 in September. Economists projected an improvement to minus 4.
Prior to the weak US data, market sentiment was dampened by pessimistic comments from German finance minister Schaeuble who said a quick fix to Europe’s debt crisis as not possible. This made euro and other risk currencies tumble. Meanwhile, the US dollar lunged against the safe haven yen, falling over 1 percent so far today from 77.44 to 76.59 at 1450 GMT.