Learn Forex Trade

Get free of complete tutorial and information to Learn Forex Trading here!

Fundamental Analysis:
Industrial Production and Capacity Utilization


Definition
Industrial Production Index and Capacity Utilization is the main key for the measurement of industrial production (goods and service) which is gotten from manufactures, miners, and so on. Capacity utilization calculates the average utilization capacity of machines in those manufacturers, that will be in the form of how many percent the achieved efficiency.

Function of Industrial Production and Capacity Utilization in Learning Forex Trading System
Industrial sector contributes 25% of GDP growth. Therefore, the index is used to forecast the GDP growth. Investors usually use the average of Capacity Utilization as an indicator of inflation. If the average is bigger than 85%, the inflation pressure will appear.

Source : Board of Governors of the Federal Reserve System.
Time of Publish : Monthly, around date 15th of the month, 09.15 AM EST.
Revision : Monthly
Revision’s Impact : Average


Bookmark/share this article with others:
Digg Technorati Delicious StumbleUpon Reddit BlinkList Furl Mixx Facebook Google Bookmark Yahoo