It is a chain-weighted measure of the change in the production of the nation's factories, mines and utilities as well as a measure of their industrial capacity and of how many available resources among factories, utilities and mines are being used (commonly known as capacity utilization). The manufacturing sector accounts for one-quarter of the economy. The capacity utilization rate provides an estimate of how much factory capacity is in use.

Monthly statistic released by the Federal Reserve Board on the total output of all U.S. factories and mines. These numbers are a key economic indicator. See also Economic Indicator.

An index of economic growth based on the production activity of manufacturing firms.

The Federal Reserve Board calculates this index by compiling indices of physical output from a variety of agencies and trade groups, weighting each index by the Census' value added, and adding it to the cost of materials. When physical measures are not available, the Federal Reserve Board uses the number of production workers or amount of electricity consumed as the basis for the index. To convert industrial production into dollars, multiply by the "real value added" estimate used by the Federal Reserve Board.

A fixed-weight measure of physical output of the nation's factories, mines and utilities. Monthly percent changes in the index reflect the rate of change in output. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. Frequency: monthly. Source: Federal Reserve.

An economic report that measures changes in output for the industrial sector of the economy. The industrial sector includes manufacturing, mining, and utilities. Although these sectors contribute only a small portion of GDP (Gross Domestic Product), they are highly sensitive to interest rates and consumer demand.