What is it?
Industrial production is a measure of the industrial output in the economy, released monthly by the Federal Reserve. It is seasonally adjusted and expressed as an index with production for 2012 set at 100. For example, a reading 125.6 for total industrial production means that the amount of industrial output is 25.6% higher than it was in 2012. In SONAR, industrial production is tracked at the following industry granularities.
USA - total production
MFTG - total manufacturing
AERO - aerospace and other transportation equipment
CHEM - chemicals
COAL - coal and petroleum
COMP - computers and electronics
DMAN - total durable manufacturing
ELEC - electrical equipment, appliances and components
FMET - fabricated metals
MACH - machinery
MINE - mining
MISC - miscellaneous
MOTR - motor vehicles and parts
NMAN- nondurable manufacturing
NMIN - nonmetallic mineral products
PAPR - paper products
PLST - plastic products
PRMT - primary metals
PRNT - printing and related
SOFA - furniture
UTIL - utilities
WOOD - wood products
The year-over-year growth is also tracked in SONAR as IPROG.
Who is interested?
Economists, analysts, carriers, specialized freight, and anyone concerned with the health of freight demand
What does it tell me?
Industrial output is perhaps the largest single contributor to domestic surface freight movements in the economy. Manufacturing makes up about 75% of the total industrial output in the economy and serves as the starting point for most of the goods that end up flowing through supply chains to the end consumer in the economy. The industry detail allows for insight into strong and weak areas of the manufacturing sector, and speaks to many specialized categories of freight.