The Industrial Production Index is a report released monthly by the Federal Reserve Board that measures the amount of goods produced by the economy. In addition to production, the report also provides a measure of capacity utilization.Changes in the volume of the physical output of the nation s factories, mines and utilities are measured by the index of industrial production. The figure is calculated as a weighted aggregate of goods and reported in headlines as a percent change from previous months.
However, it is used as a leading indicator and helps in forecasting GDP changes.
Rising industrial production figures signify increasing economic growth and can positively influence the sentiment towards local currency.