Description: The index of Industrial Production is a fixed-weight measure of the physical output of the nation's factories, mines and utilities. This report is combined with capacity utilization which is seen as a critical gauge of the slack available in the economy. The industrial sector of the economy represents approximately 25 percent of GDP. Changes in GDP are heavily concentrated in the industrial sector. Therefore, changes in the index of industrial production provide useful information on the current growth of GDP. Investors use the capacity utilization rate as an inflation indicator. If it gets above 85%, inflationary pressures are generated.
The data are revised monthly for the prior three months to reflect more complete information. New seasonal adjustment factors are introduced in December. The revision affects at least three years worth of data and its significance is moderate.
Release Date: 9:15 AM (EST); Monthly, approximately 15 days following the reporting