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Industrial productionis a measure ofoutputof theindustrial sectorof theeconomy.The industrial sector includesmanufacturing,mining,andutilities.[1]Although these sectors contribute only a small portion ofgross domestic product(GDP), they are highly sensitive tointerest ratesandconsumer demand.[2]This makes industrial production an important tool forforecastingfuture GDP and economic performance. Industrial production figures are also used bycentral banksto measureinflation,as high levels of industrial production can lead to uncontrolled levels ofconsumptionand rapid inflation[citation needed].
See also
editReferences
edit- ^"Industrial Production and Capacity Utilization".Federal Reserve Board.Archivedfrom the original on 1999-09-09.Retrieved2011-02-08.
- ^"Assessing the Federal Reserve's Measures of Capacity and Utilization"(PDF).Shapiro et al.Archived(PDF)from the original on 2017-12-05.Retrieved2017-01-08.