Figure 1. Index Numbers of Domestic Business, 1919-1922
Source:Federal Reserve Bulletin, March 1922
Figure 2. Index Numbers of Domestic Business, 1919-2018
Series: IP index for manufacturing and IP index for mining
Horizon: January 1919 to December 2018
Description: This is a line chart with two lines—one for the industrial production (IP) index for manufacturing and one for the IP index for mining. The x-axis measures time and runs the entire history of IP data—from 1919 through 2018. There are lightly shaded vertical bars on the chart that represent periods of business recession as defined by the National Bureau of Economic Research. The y-axis ranges from 50 to 2500. The lines for manufacturing and mining are set to equal 100 in 1919. The two lines generally rise over the period shown, although both exhibit volatility and they drop during recessions
Manufacturing IP shows a particularly sharp decline during the Great Depression of the early 1930s, but it recovers by the end of the decade. Manufacturing rises especially sharply in the early 1940s, falls back in the middle of the decade and then begins a long stretch of increases that are generally interrupted only by recessions. The Great Recession of 2008 marks another period of decline for manufacturing; by the end of the period shown, the index has still not recovered to its pre-recession peak.
Mining IP follows a path very similar to manufacturing up until the early 1940s. Unlike manufacturing, however, it does not exhibit sharp gains in the pre-World War II period, rather it rises more moderately. The index rises until about 1980 when it begins to trend downward slowly; this continues until about 2010 when the index increases sharply, up to about 500 in late 2014. It then shows a steep dip until mid-2016 and is followed by a recovery. By the end of 2018, mining IP is shown to have surpassed its previous peak.
Note:The shaded areas are periods of business recession defined by the National Bureau of Economic Research: January 1920-July 1921, May 1923-July 1924, October 1926-November 1927, August 1929-March 1933, May 1937-June 1938, February 1945-October 1945, November 1948-October 1949, July 1953-May 1954, August 1957-April 1958, April 1960-February 1961, December 1969-November 1970, November 1973-March 1975, January 1980-July 1980, July 1981-November 1982, July 1990-March 1991, March 2001-November 2001, and December 2007-June 2009.