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.
