Definition:
The Index of Industrial Production is a chain-weight measure of the physical output of the nation's factories, mines and utilities. The capacity utilization rate measures the proportion of plant and equipment capacity used in production by these industries.
Importance:
While the industrial sector of the economy represents only about 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.
Source:
Board of Governors of the Federal Reserve System.
Availability:
Around the 15th of the month at
Frequency:
Monthly.
Revisions:
The data are revised monthly for the prior three months to reflect more complete information. New seasonal adjustment factors are introduced in December. This revision affects at least three years worth of data. Its significance is moderate.
Raw Data:
http://www.federalreserve.gov/releases/G17/Current/g17.txt
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