The real weight on manufacturing was from consumer goods production. It fell 0.6%, led by a 1.7% decline in the output of appliances, furniture and carpeting. The output of business equipment rose 0.9% following a 1.4% rise in May. Computers and semiconductors output was the strongest.
Looking forward, utility output might remain firm in July and the high unemployment and weakness consumption does not auger well for improved consumer goods output. In turn, this implies risk to business investment too. Industrial output this month may be weak as well.
The buying of the euro seems to be slowing as the $1.29 area was approached, but momentum players are still thought to be good buyers on small pullbacks and good interest was reported in short-dated euro calls. While sterling, yen and Swiss franc are struggling to keep up with the euro, the dollar-bloc continues to under perform.