Industrial Production Index - IPI

What is the 'Industrial Production Index - IPI'

The industrial production index (IPI) is an economic indicator that is released monthly by the Federal Reserve Board. The indicator measures the amount of output from the manufacturing, mining, electric and gas industries. The reference year for the index is 2002 and a level of 100.

BREAKING DOWN 'Industrial Production Index - IPI'

Production data is often received directly from the Bureau of Labor Statistics and trade associations, both on physical output and inputs used in the production process. Each individual index is calculated using the Fischer index formula.

Investors can use the IPI of various industries to examine the growth in the respective industry. If the IPI is growing month-over-month for a particular industry, this is a sign that the companies in the industry are performing well.

RELATED TERMS
  1. Productivity

    An economic measure of output per unit of input. Inputs include ...
  2. Output Gap

    An economic measure of the difference between the actual output ...
  3. Indicator

    Indicators are statistics used to measure current conditions ...
  4. Growth Industry

    A sector of the economy experiencing a higher-than-average growth ...
  5. Composite

    A grouping of equities, indexes or other factors combined in ...
  6. Emerging Industry

    A group of companies in a line of business formed around a new ...
Related Articles
  1. Markets

    Is a U.S. Industrial Recession on the Horizon in 2016?

    Find out why the industrial economy may be teetering on an industrial recession and what could prevent it from going over the cliff.
  2. Markets

    Explaining Industry

    The term industry refers to a classification of companies that share similar business activities.
  3. Markets

    Key Financial Ratios to Analyze the Mining Industry

    Discover some the most important financial ratios used by investors and analysts to evaluate companies in the metals and mining industry.
  4. ETFs & Mutual Funds

    Introduction To Coincident And Lagging Economic Indicators

    Investors can learn a lot, or very little, from these indicators once they know how to use them.
  5. Markets

    Industrials Sector: Industries Snapshot (XLI, BA)

    Discover the 12 industries that comprise the industrials sector of the Standard and Poor's 500 Index, and learn which key companies could help your portfolio.
  6. Markets

    Eurozone Industrial Production's Upside Surprise

    The 28-nation Eurozone’s industrial production rose by 1.7% in January 2016 compared to December 2015, according to Eurostat.
  7. Markets

    What is Industrialization?

    Industrialization is the process of a society, usually a country, transforming itself from an agricultural-based economy to one based on manufacturing. Even then, agricultural output grows as ...
  8. Managing Wealth

    Economic Indicators That Do-It-Yourself Investors Should Know

    Understanding these investing tools will put the market in your hands.
  9. ETFs & Mutual Funds

    What is an Index?

    An index is a statistical means of calculating a change in an economy or market.
  10. ETFs & Mutual Funds

    The Pros and Cons of Indexes

    Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how there is an opportunity cost to using index funds.
RELATED FAQS
  1. What kinds of productivity data does the Bureau of Labor Statistics keep?

    Learn about the types of productivity data kept by the Bureau of Labor Statistics, including labor productivity and multifactor ... Read Answer >>
  2. What developed countries have the largest proportion of industrial companies?

    Examine the industrial sector in developed countries, and learn about the shift in manufacturing production to emerging market ... Read Answer >>
  3. How is productivity calculated?

    Learn about productivity, what productivity measures and how to compute a company's productivity level by measuring its outputs ... Read Answer >>
  4. What are the main benchmarks for tracking the performance of the metals and mining ...

    Discover how benchmarks are useful to investors and a variety of indexes and ETFs that can be used as benchmarks to track ... Read Answer >>
  5. What economic indicators should be monitored when investing in the industrial sector?

    Discover the economic indicators to monitor when investing in the industrial sector. The industrial sector is cyclical and ... Read Answer >>
  6. What other sectors are most similar to metals and mining?

    Learn about industries similar to the mining and minerals industry and about some of the challenges and needs these industries ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center