How Does Industrial Production Affect Stocks & ETFs?

The Industrial Production Index measures real output of the manufacturing, mining, and utilities sectors. Capacity utilization — the percentage of productive capacity in use — is reported alongside. Together they gauge the supply side of the economy.

Industrial production reflects the health of the goods-producing economy. Capacity utilization above 80% historically signals potential inflationary pressure from supply constraints. Declining production can foreshadow broader economic weakness.