Industrial sector indices evaluate the current and predict the future state of the country's production using the following indicators:
- The industrial production index is a characteristic of the final output of the volume of production of national, industrial, mining and municipal enterprises.
Traders identify indicator with the strength of the national economy – the short-term reaction of bidders to its increase strengthens the national currency and causes a fall when the dynamics weaken.
Traders of the foreign exchange market do not pay attention to the publication of data on this indicator, but long – term investors monitor that the parameter has a "normal" value-81.5%. The exit of the figures above the level of 85% indicates an overheating of the economy, which will indicate in advance possible measures of tightening monetary policy.
Traders Forex ignores the value of this data when speculating and investing.
Industrial products are divided into 4 types: metallurgical products, transport, electrical engineering and mechanical engineering. The index is calculated without taking into account government expenditures and defense sector products produced.
The released indicators are of great importance in Forex, confirming / disappointing consumer confidence and the expectation of positive economic prospects on the part of the business community. The indicator is compiled according to the volumes of products that are expensive for the consumer's expenses, so an increase in the values definitely leads to a short-term and long-term strengthening of the national currency.
In the short term, the indicator does not affect the Forex currency market, investors in the long term consider the value as a confirming factor of inflationary processes or economic stagnation when warehouses are overstocked.