Measures changes in the volume of output produced by the manufacturing, mining, and utility sectors. Because industrial production is a measure of output volume rather than dollar value, the figure is not distorted by inflation and is considered a more "pure" indicator for US industry. Though industrial production only accounts for a relatively small portion of GDP, it accounts for most of the volatility in GDP and is considered highly sensitive to changes in interest rate and consumer demand. Therefore understanding trends in this figure are important to forecasting GDP. High or rising Industrial Production figures suggest increased production and economic expansion. However, uncontrolled levels of production and consumption can spark inflation.

The figure varies significantly month to month due to the fact that seasonal and weather-related factors often alter factory production and utility demand. Because of this volatility, the report has limited market impact.

The figure is calculated as a weighted aggregate of goods and reported in headlines as a percent change from previous months.

Relevance: Rarely affects markets
Release schedule : 9:15 AM (EST); Monthly, approximately 15 days following the reporting month's end
Revisions schedule : Modest revisions 3 months following the release plus annual revisions in the early fall
Source of report : Federal Reserve Board
Web Address : www.federalreserve.gov
Address of release : www.federalreserve.gov/releases/g17/current