Summary of Monthly Procedures

The IP and capacity utilization monthly processing can be presented as six identifiable steps:

Step 1. Receipt of data either through email or by downloading off the internet. Daily averages of the product data are calculated, and not seasonally adjusted indexes are derived from the raw data. Production factor coefficients are applied, when appropriate, to develop indexes of production (not seasonally adjusted) and seasonal factors are applied to compute seasonally adjusted indexes.

Step 2. The data are reviewed: estimates provided for missing values; improbable values replaced; inconsistencies analyzed; help supply adjustments, if appropriate, are incorporated.

Step 3. Market and industry aggregates are calculated, both seasonally adjusted and unadjusted.

Step 4. The data are further reviewed, and utilization rates are calculated using capacity indexes that are estimated at the start of the year and updated periodically.

Step 5. The industrial production staff reviews the results with senior staff members of the Division, reports major numerical results to the Federal Reserve Chair, and prepares a draft of the text for the press release. The text is cleared with the senior staff of the Division and the Board's Office of Public Affairs.

Step 6. The G.17 is released in mid-month at 9:15 a.m. Eastern time.

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Last Update: March 31, 2017