https://www.cmegroup.com/content/dam/cmegroup/images/common/default/article-940x600.jpg
IT: Industrial Production
| Consensus | Consensus Range | Actual | Previous | |
| Month over Month | 0.1% | -0.1% to 0.2% | 0.5% | 0.7% |
| Year over Year | 0.5% | 0.4% to 1.1% | 1.3% | 1.5% |
Highlights
Industrial output increased 0.5 percent in April after a 0.7 percent increase in March and was 1.3 percent higher than April of last year. The results are above the median of an Econoday survey of economists' forecasts which called for a 0.1 percent month-on-month gain and a 0.4 percent increase year-on-year expansion.
The year-on-year increase was supported by a 17.8 percent jump in the manufacture of transportation equipment, followed by increase of 7.9 percent for pharmaceuticals and a 6.1 percent gain for machinery and equipment.
The result reflects a broader trend in the European economies which have seen increases in orders and production as the conflict in the Middle East has prompted businesses on both the demand and supply side to get ahead of price increases and supply chain disruptions.
Market Consensus Before Announcement
The consensus sees output up 0.1 percent on month and 0.5 percent on year in April after rising 0.7 percent on the month and 1.5 percent on year in March.
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Construction is excluded. Approximately 4,100 companies provide data on more than 8,000 monthly flows of production.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.