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The index of industrial production
This is a quantity index compiled by the government. This measures changes in the volume of production in main industries. The index is a excellent indication of the state of national economy.
This covers the given major industries in the UK
i. Quarrying and Mining
ii. Manufacturing as like food, tobacco and drinks, chemicals, and metal manufacture, engineering.
iii. Construction
iv. Textile
v. Gas electricity, water and so on.
This excludes agriculture, trade, fishing, finance, transport and other such industries.
All industries order is described a weighting. The weighting is based upon average per month production in each industry in a fixed base year. This described each item its relative significance amongst all other items and hence gives a better estimate of the index for comparison reasons.
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