IPI Edges Higher

April 22, 2024

The Industrial Production Index (IPI) rose 0.4 percent in March but declined at an annual rate of 1.8 percent in the first quarter. Manufacturing output increased 0.5 percent in March, boosted in part by a gain of 3.1 percent in motor vehicles and parts, and factory output.

IPI measures levels of production and capacity in the manufacturing, mining, electric, and gas industries, relative to a base year. It is considered a leading indicator for estimating output before the release of GDP data. IPI is published by the Federal Reserve Board using data from industry associations and government agencies and aggregated into an index.