US factory orders rose 0.3% in February, the third monthly increase in a row, according to figures from the US Federal Reserve. Overall industrial production in the US was flat with declines in mining and car manufacturing. In a separate release, the Labour Department announced that US consumer prices rose by 0.4% in February. However, 80% of the increase in prices was driven by higher petrol costs, caused by the rising cost of oil. The rise in prices was the largest in 10 months, but so-called "core" prices - which strip out petrol and energy costs - were almost unchanged, increasing by 0.1%.
The factory data is the latest in a string of positive signs for the US economy, which created a better than expected 227,000 jobs in February, 31,000 of which were in the manufacturing sector.
The euro is trading almost unchanged at the beginning of the trading week, hovering over 1.3170 and in a narrow range ahead of a very light docket on Monday.
Only Industrial Orders in Italy and EMU’s Construction Output are due later on. Across the pond, Fed’s W.Dudley will hold a speech and NAHB Housing Market Index is also expected.
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