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Home » Forex Glossary » Industrial Production United States

Industrial Production United States

It is a monthly measure of the total number of output manufactured in the utility, mining and manufacturing industries. Because the figure is a monthly measure and external factors may affect the volume of output from month to month, the industrial production report may show volatility in its figures. This level of volatility is something that also contributes in GDP volatility. Furthermore this figure is considered a pure indicator of the US industry because this figure is a measurement in quantity and is not influenced by such factors as inflation. Also industrial production also gives us an indication if the health of the economy. For example, if the figure produces high numbers then that indicates that the economy is going under expansion and production increase. Conversely, low levels in industrial production can indicate a decrease in production and economic slowdown.