U.S. industrial production grows above expectations in June on rise in mining production

U.S. industrial production grew above expectations in June. In sequential terms, industrial production rose 0.4 percent, as compared with consensus expectations of a rise of 0.3 percent. The rise was mainly driven by the 1.6 percent growth in mining production, reflecting the ongoing rebound in mining activity. With the contribution from mining countering some aid to the tepid growth in industrial sector, the wides measure of output is now expanding at its most rapid three-month annualized rate in around three years. Mining is just around 11 percent of industrial production.

Meanwhile, manufacturing output, which contributes over three quarters to the headline figure, rose 0.2 percent in June. Having been roughly flat in 2015 and 2016, even this stuttering rate of growth shows a trend improvement and factors into the projection for modes growth in equipment spending in 2017. The production component of the ISM survey for June rose above 60 for the first time in four months to 62.4.

Within manufacturing, motor vehicles and parts rebounded, rising 0.7 percent sequentially, while manufacturing excluding motor vehicles, which contributes 72.6 percent to manufacturing production, rose 0.1 percent sequentially.

At 19:00 GMT t the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -100.02. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest