US May IP data may show positive growth in manufacturing

Drop in oil price, appreciating US dollar, and mixed global demand, created unfavourable environment for the US industrial sector in past few months. As a result, industrial production could able to post only 1.9%y/y growth in April.

The headline inflation in May expected to increase by 0.5% from -0.3% and similar gain is expected in manufacturing production, says Standard Chartered in a report on Monday. 

At Wednesday's FOMC meeting, the Fed may dismiss some of the manufacturing softness to focus on the more resilient private consumption picture, adds Standard Chartered.