This report shows a change in the production of factories, mines, and utilities within a nation. It also reports their “capacity utilization,” the degree to which each factory’s capacity is being used. It is ideal for a nation to see a production increase while being at its maximum or near-maximum capacity utilization.
Traders using this indicator are usually concerned with utility production, which can be extremely volatile since the utility industry and energy markets are heavily affected by changes in weather. Unexpected weather events can result in significant revisions between reports, which in turn can cause volatility in the nation’s currency.