Investment Strategy Network has started to provide the economic influence of the Industrial Production Index factor on the ISN Portal for individual stocks.
Today we are starting to show the influence of the U.S. Industrial Production on U.S. stocks within the database. Each individual stock’s data sheet will now have a notation titled Industrial Production. Figure 1 provides a cutout of the table that is available through the stock search menu option.
The Industrial Production index is an economic indicator that measures real output for all facilities located in the U.S. manufacturing, mining, electric and gas utilities. It also includes newspapers, periodical and book publishing. The index is calculated monthly with a base year of 2002.
Many investors and economists place importance in the indicator because it tends to demonstrate periods of coming inflation. If manufacturing is operating at near or full capacity then there is a good chance that prices will increase, leading to potential inflationary periods. Many investors are cautious in using the indicator because it only covers manufacturing which is less than half of the U.S. economy
We are using this as a general market indicator in terms of the impact production changes have on the market as a whole and inflation. Additional economic factors will be added throughout the year to the service.
Industrial Production influence has been classified into one of five categories: Very Strong, Strong, Moderate, Uncertain and Inverse. As new economic factors are added to the ISN Portal we will make a service announcement.
