What Is an Industrial Production Index?

The industrial production index is an index of physical quantities of industrial products compiled using weighted arithmetic averages. It is an indicator commonly used in Western countries to calculate and reflect the speed of industrial development, and it is also the first indicator of prosperity analysis. The industrial production index is based on the production volume of the representative product, and the individual index obtained by dividing the reporting period by the base period to obtain the product output, and the weighted calculation of the total index with the industrial added value calculation weight. Therefore, in the calculation of the industrial production index, the calculation of the added value of the product is the key to the calculation of the weight.

Industrial production index

The Industrial Production Index is a relative indicator that measures the real output of manufacturing, mining, and public utilities.

The basic principle of the industrial production index is based on

According to the principle of the aforementioned industrial production index, there are three different calculation formulas due to the different forms of weights:

The weight is fixed at

The overall plan for calculating the industrial production index mainly includes the determination of representative products, the calculation of weights and the calculation of the index, which are divided into three steps accordingly:

1. Determine the catalog of representative products at this level. This is an important part of calculating the industrial production index. Whether the selection of the representative products is scientific and reasonable has a direct impact on the accuracy of the production index calculation results. China has selected more than 500 representative products monthly. The basic principles of its selection include: selecting representative products from various industries by variety and specification, and focusing on

1. Look at the difference between the development rate of industrial production index and industrial gross output value:

The calculation principles are different. The calculation principle of the industrial production index is the product method, which is the factory method. The industrial production index is calculated from the selection of important representative products, and is calculated based on the weighted average of the individual individual indexes; the latter is calculated using all industrial products, using the total output value of each industrial enterprise and the Base period output value.

2. The industrial production index has its unique advantages:

Futai international practice, can be in line with international standards, can be directly used for comparison of international statistical data;

Can well meet the timeliness requirements;

It helps to improve the anti-interference ability of data and the data quality of industrial development speed;

It can provide the speed of development by industry and avoid the industry crossover phenomenon;

It can meet the needs of the new national economic accounting system.

3. It should be pointed out that the industrial production index is a relative indicator. It only reflects the economic situation and development trend of the short-term economy. When researching the issue of speed and efficiency, it cannot provide absolute quantitative indicators. At the same time, it cannot provide the development speed grouped by corporate logo. These data still need to be obtained through other channels.