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Industrial Production

Trading Term

The Federal Reserve collates data to measure the output associated with physical production across the economy, including mines and utilities. The report tells us how much electricity is being generated each month, which hints at how the economy is doing in general. And it also reports on auto manufacturing activity, which is sensitive to consumer demand. Associated with the report is a measure of capacity utilization, which also informs investors on whether the manufacturing side of the economy is firing on all cylinders or has more available unused capacity.

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