Industries will expand or contract production to meet demand or expected demand. For example, the demand for consumer light trucks has risen dramatically over the past ten years relative to demand for consumer cars. The current level of consumer light truck production is more than twice the level in 1992.
|Industrial Production Index (Jan-92=100)||May-02||Jun-02|
|Consumer light trucks||341.65||356.97|
|Percent change from previous month||-0.10||4.48|
|Commercial motor vehicles||175.31||177.82|
|Percent change from previous month||-2.01||1.43|
|Percent change from previous month||-1.71||1.93|
NOTES: These numbers represent three components of Standard Industrial Classification grouping for motor vehicles (371). The figures for selected nonautomotive industries (372-6,9) are on the page entitled "Industry Production Indices for Nonautomotive Transportation Equipment."
The dip in assemblies in mid-1998 was caused by a strike at General Motors in June and July.
These indices are based on market group categories as opposed to the industrial group categories used for the capacity utilization estimates and the other industrial production index data from the Federal Reserve.
Data from March to June 2002 are preliminary.
The base period of the original index is the 1992 annual index. The month of January 1992 is set to be the new reference point (=100) by dividing the values of the original index by the value of January 1992 in the original index. It is important to point out that this process changes only the reference point, and not the base period of the index because the weight structure of the index did not change.
SOURCE: Federal Reserve, "Industrial Production and Capacity Utilization" Statistical Release; July 16, 2002; available at: http://www.federalreserve.gov/releases/g17/download.htm.