US: Industrial Production expands by 1.4% in May vs. 2.9% expected

• Industrial Production in the US recovered sharply in May.
• US Dollar Index continues to push higher toward 97.00.

Industrial Production in the US expanded by 1.4% on a monthly basis in May, the data published by the Federal Reserve showed on Tuesday. This reading came in worse than the market expectation for an increase of 2.9% but showed an impressive recovery from April's decline of 12.5%.

"Manufacturing output, which fell sharply in March and April, rose 3.8% in May; most major industries posted increases, with the largest gain registered by motor vehicles and parts," the Fed further noted in its publication. "Capacity utilization for the industrial sector increased 0.8 percentage point to 64.8% in May."

Market reaction

The US Dollar Index edges higher toward 97.00 in the early American session and was last seen gaining 0.25% on the day at 96.87.