US - Both Empire and Industrial Production were weaker than expected

US economists say the slip in May IP was on the back of energy related components in particular. As an example, consumer goods were down 0.2% but it was nondurable consumer goods doing all the damage, with widespread weakness, particularly on the energy side of the equation. 

While Empire was weak, that is not much of a concern given its poor correlation to ISM. In ISM adjusted terms, the index was barely changed at 51.9 vs. 52.1 in the previous month. In other words, weakness was not widespread beneath the surface. A better early read on June manufacturing activity will come later in the week with the Philly Fed survey.