| Definition:
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Industrial Production measures the physical output of the nation's factories, mines and utilities. These goods-producing industries account for almost 45% of the economy. The capacity utilization rate reflects the amount of resources being used for production. Industrial production is expressed as a percentage of the real output produced in a base year. Currently, the base year is 1992
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| Meaning:
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These reports show the quantity factories, mines and utilities are producing and how much of capacity is in use for that production. If capacity becomes stretched it could lead to bottlenecks in the production line. The Federal Reserve keeps a close eye on inflationary pressures caused by a high production or utilization rate.
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| Weight:
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***
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| Source:
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Federal Reserve Board
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| Availability:
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Report released 2-3 weeks following the reference month.
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| Frequency:
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Monthly
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| Coverage:
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Data are for the previous Month (Data for May are released in June)
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| Volatility:
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Low
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Impact on the Markets:
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| Interest Rates:
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Industrial Production  = Interest Rates
Industrial Production  = Interest Rates
Capacity Utilization = Interest Rates
Capacity Utilization = Interest Rates
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| Fixed-income:
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Industrial Production = Bond Market
Industrial Production = Bond Market
Capacity Utilization = Bond Market
Capacity Utilization = Bond Market
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| Equities:
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Industrial Production = Stock Market
Industrial Production = Stock Market
Capacity Utilization = Stock Market
Capacity Utilization = Stock Market
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| Dollar:
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Industrial Production = Little Effect
Industrial Production = Little Effect
Capacity Utilization = Little Effect
Capacity Utilization = Little Effect
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| More Information:
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Federal Reserve Board
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