Industrial Production

Industrial production

A statistic determined by the Federal Reserve Board focusing on the total output of all US factories and mines on a monthly basis. Used as an economic indicator.

---

industrial production

A measure of the country's economic health judged by its output from manufacturing, mining, and utility industries. Industrial production is calculated by the Federal Reserve, which publishes a monthly index of industrial production. Rising industrial production is generally more favorable for stockholders than for bondholders because it can signal rising inflationary pressures and higher interest rates. Also called index of industrial production.

---

Industrial Production

An index of the total output from manufacturing, mining, and utility companies. The Federal Reserve Board compiles the industrial production index and publishes it monthly. It is seen as an indicator of macroeconomic trends. A high industrial production index indicates economic growth and is seen as a positive sign for stockholders, especially in industrial sectors. A low industrial production index indicates that industry is falling, which is bad for stockholders, but good for bondholders, since the Fed may use the index as a reason to cut interest rates. Low industrial production also means that there are fewer inflationary pressures on the economy.