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Industrial production is a measure of output of the industrial sector of the economy. The industrial sector includes manufacturing, mining, and utilities.[1] Although these sectors contribute only a small portion of gross domestic product (GDP), they are highly sensitive to interest rates and consumer demand.[2] This makes industrial production an important tool for forecasting future GDP and economic performance. Industrial production figures are also used by central banks to measure inflation, as high levels of industrial production can lead to uncontrolled levels of consumption and rapid inflation[citation needed].
See also
References
- ^ "Industrial Production and Capacity Utilization". Federal Reserve Board. Archived from the original on 1999-09-09. Retrieved 2011-02-08.
- ^ "Assessing the Federal Reserve's Measures of Capacity and Utilization" (PDF). Shapiro et al. Archived (PDF) from the original on 2017-12-05. Retrieved 2017-01-08.
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