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 that
economic growth and is seen as good 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, as 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.