An industry production (IP) index is a measure of the output of a specified manufacturing, energy, or mining industry relative to a level of output (in terms of units) produced in the past.
Industries will expand or contract production to meet demand or expected demand. Actual demand is seen in high cost equipment that is often ordered directly from the manufacturer or an intermediary. Aircraft, commercial shipping watercraft, and rail equipment usually already have a buyer before fabrication starts. Lower-priced equipment reflects expected demand. This includes products like consumer watercraft, motorcycles and bicycles, and camping equipment.
|Industry Production Index (1992=100)||Oct-01||Nov-01|
|Production Index of Ships and Boats||102.56||103.12|
|Percent Change from Previous Month||1.81||0.55|
|Production Index of Aircraft and Parts||94.05||89.83|
|Percent Change from Previous Month||-1.93||-4.49|
|Production Index of Railroad and Miscellaneous Transportation Equipment||89.43||88.25|
|Percent Change from Previous Month||-1.13||-1.32|
NOTES: These numbers represent the following Standard Industrial Classification groupings: Aircraft and parts (372), Ships and boats (373), and Rail and miscellaneous transportation equipment (374-6,9). The numbers for automotive industries (371) are on the page entitled Industry Production Indices for Automotive Transportation Equipment.
Data from August to November 2001 are preliminary.
SOURCE: Federal Reserve, "Industrial Production and Capacity Utilization" Statistical Release; Jan. 16, 2002; available at: http://www.federalreserve.gov/releases/g17/download.htm.