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Forex Glossary Index:
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Industrial Production
Industrial production measures the aggregated output value of production by factories, mines and utilities within a country or territory. In developed economies associated with major currencies in forex trading, industrial production account for about one-quarter of their overall economic activities. The ratios are generally even higher in most newly developed or emerging economies. Therefore, industrial production is a good indicator of the general health of an economy. In forex trading, a greater-than-expected increase or a smaller-than-expected decrease in industrial production normally leads to appreciation of the associated currency. Alternatively, a greater-than-expected decrease or a smaller-than-expected increase in industrial production normally leads to depreciation of the associated currency.
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