UK gilts shrug off solid retail sales data; 10-year yield falls to 1-week low as coronavirus fear haunts
U.S. industrial production likely to have risen modestly in June
U.S. industrial production data for the month of June is set to release tomorrow. Reflecting slower global growth and ongoing trade uncertainty, manufacturing production has floundered in 2019 and weighed on total industrial production, noted Wells Fargo in a research report. However, industrial production in May had seen a recovery of 0.4 percent, with manufacturing production recording its first monthly rise in 2019.
The ISM manufacturing index dropped a bit in June, but implied a continued growth in manufacturing activity. Softness in the new orders component of the index implies production growth is likely to stay modest. Uncertainty regarding the structure of future trading relations continues to linger, even in spite of Presidents Trump and Xi agreeing to further trade negotiations, which also implies manufacturing will stay under pressure in the months ahead.
“We forecast that total industrial production rose 0.1 percent in June as challenges remain for the factory sector”, added Wells Fargo.
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