What is gross industrial output, and what impact does gross industrial output have on foreign exchange?

Gross industrial output value is an important indicator that reflects the total scale and level of industrial production in a country or region in a certain period of time. This indicator has extremely important significance. So what exactly is gross industrial output value, and what are the effects of gross industrial output value on foreign exchange? This article will give you a brief introduction.

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What is gross industrial output

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The total industrial output value is the total amount of sold or available-for-sale industrial products produced by industrial enterprises in a certain period of time, which reflects the total scale and overall level of industrial production in a certain period of time. It includes: the value of finished products that are no longer processed in the enterprise, the value of finished products that have been inspected, packaged and put into storage (except for products that require packaging), the value of industrial operations, the value of self-made semi-finished products, and the value of the difference between the end of the product period and the beginning of the product period (with a long production cycle) enterprise computing). The total industrial output value is calculated by the "factory method", that is, the industrial enterprise as a whole is calculated according to the final results of the industrial production activities of the enterprise. Repeated calculation is not allowed within the enterprise, and the results produced by each workshop (branch factory) within the enterprise cannot be compared. add. But there is double counting between companies, industries, and regions.

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The division of the total output value of light and heavy industries is also calculated according to the "factory method", that is, the nature of the main products produced by an industrial enterprise under normal circumstances belongs to light industry, then the total output value of the enterprise is regarded as the total output value of light industry; If the nature of the product belongs to heavy industry, the total output value of the enterprise shall be regarded as the total output value of heavy industry.

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The total industrial output value includes: the value of the finished products produced in the current period, the income from external processing fees, the balance of the self-made semi-finished products and the work-in-progress at the end of the period and the beginning of the period.

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Calculation method of gross industrial output value

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1. Gross industrial production = monthly product output × product sales unit price

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The sales unit price is the unit price without tax, because the value-added tax itself does not represent the income.

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2. Gross industrial production = income from main business of the current month + ending balance of inventory commodities - beginning balance of inventory commodities

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Current month sales revenue = current month sales quantity × current month sales unit price

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Closing balance of goods in stock = closing quantity of goods in stock × sales unit price of the current month

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Beginning Balance of Inventory Commodities = Beginning Quantity of Inventory Commodities × Sales Unit Price of the Month

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(1) Replacing gross industrial output value with product sales revenue or production cost

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(2) Do not follow the principle of production (the product is not produced by the company)

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(3) The balance of semi-finished products and work-in-progress at the end of the period and the beginning of the period is omitted

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Calculation principle of gross industrial output value

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1. Principles of industrial production. All the qualified products produced by the enterprise during the reporting period, regardless of whether they are sold in the reporting period or not, should be included in the calculation of the gross industrial output value.

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2. The principle of the final product. All products included in the total industrial output value must be the final products produced by the enterprise that have passed the inspection and do not need any further processing. If the enterprise has intermediate products for external sales, it is also regarded as the final product of the enterprise and should also be included in the total output value of the enterprise.

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3. The principle of factory law. The gross industrial output value is calculated according to the final product of the enterprise, so the value of the same product is not allowed to be double-counted within the enterprise, but it is allowed to be double-counted between enterprises.

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What impact does the gross industrial output have on the foreign exchange market?

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1. The growth of gross industrial output will make it possible for the country's central bank to raise interest rates and tighten the money supply. The country's economic performance and rising interest rates will increase the attractiveness of the country's currency. Therefore, high economic growth rate will promote the rise of the national currency exchange rate, while low economic growth rate will cause the country's currency exchange rate to fall.

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2. A country's high economic growth rate means an increase in income and an increase in the level of domestic demand, which will increase the country's imports, resulting in a current account deficit and a fall in the domestic currency exchange rate.

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3. The country's economy is export-oriented, and economic growth is aimed at producing more export products. The increase in exports will make up for the increase in imports and reduce the pressure on the domestic currency exchange rate to fall.

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4. Gross industrial output is a country's high economic growth rate, which means that labor productivity increases rapidly, and the cost reduction improves the competitive position of domestic products, which is conducive to increasing exports and inhibiting imports, and the high economic growth rate makes the country's currency in the foreign exchange market. If it is optimistic, the currency exchange rate of the country will have an upward trend.

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Now everyone should know what the gross industrial output value is! For ordinary investors, this gross industrial output value can only be used as a reference. In addition, it can be seen that gross industrial output value has a great impact on foreign exchange, so investors should pay due attention to the gross industrial output value when analyzing the foreign exchange market. Variety.