Definition: The Industrial Production Index (IPI) measures the output of US factories, mines, and the utilities sector.
Description: IPI measures the strength of US industries. By tracking changes in the level of industrial production, the index provides an overview of the health of US industry as a whole and also provides investors with a sense of which industries are growing and which are contracting. With industrial production making up almost 40% of total economic activity, investors keep a close eye on monthly changes in IPI.
Influence: Increased industrial output leads to an increase in the value of money, which boosts the stock market and brings the bond market down. However, analysing the Industrial Production Index is fairly straightforward, so sharp changes in the index have already been reflected as gradual changes on the markets well in advance.
Market Impact: Medium
Released: The middle of each month at 14:15 GMT
Source: The Federal Reserve