Industrial Business Indicator (IBI)

Hannah BlalockMacro Economic Indicators

IBIUR – Industrial Business Indicator Utilization Rates, Non Seasonally Adjusted

IBIUI – Industrial Business Indicator Utilization Index, Seasonally Adjusted

IBIAI – Industrial Business Indicator Activity Index, Seasonally Adjusted

What is it?

The Industrial Business Indicator (IBI) is a proprietary monthly diffusion index wherein results above 50 indicate expansion. The index is derived from three components: business activity, space utilization and the actual rate of space being utilized. The data is collected from geographically diverse locations, representing a variety of business sectors and markets currently moving inventory through the global supply chain. Additionally, the index signals the pace of business momentum.

Who is interested?

Financial analyst, and anyone looking to understand the cyclical nature of the industrial real estate market. 

What does it tell me?

The IBI is a leading indicator of U.S. and local economic and market conditions. The changes from month to month in the trend line of the index are useful for detecting turning points in business activity and space utilization, as well as comparative variations between markets and among industry groups including; strength and course of businesses, a directional trend of the overall economy and demand for distribution and industrial space.