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FEDERAL RESERVE statistical release
G.3

For immediate release
April 16, 1980

(402)

CAPACITY UTILIZATION:

MANUFACTURING AND MATERIALS
March 1980

Manufacturers operated at 83.0 percent of capacity in March, 0.9
of a percentage point lower than in the preceding month and 4.1 percentage
points below a year earlier. The utilization rate for industrial materials
was 84.4 percent in March, down 0.8 of a percentage point from February
and 3.9 percentage points from a year earlier. In the first quarter of
1980 the manufacturing and the materials utilization rates were respectively
3.0 and 2.8 percentage points lower than in the first quarter of 1979.
Within manufacturing, the utilization rate for primary processing
industries fell 1.5 percentage points, and the rate for advanced processing
industries fell 0.6 percentage point, with widespread declines in both
groups of industries.
Producers of durable goods materials operated at 81.3 percent of
capacity in March, down 1.1 percentage points from the previous month and
6.2 percentage points from a year earlier. The rate of utilization for
metals materials has fallen by approximately 11 percentage points over
the past year. The utilization rate for nondurable goods materials, which
until recently had held fairly steady at a relatively high level, declined
0.9 of a percentage point in March to 88.9 percent; the decline in this
rate since the end of 1979 mainly reflects drops in utilization rates for
paper and textile materials.




MANUFACTURING

PERCENT

INDUSTRIAL MATERIALS

100

TOTAL

80

60
100

NONDURABLE GOODS

PRIMARY PROCESSING

80
ADVANCED PROCESSING

60
1971

1974

1Q77

OUTPUT, CAPACITY AND CAPACITY UTILIZATION
Output and Capacity are Percentages of 1967 Output; Capacity Utilization is a Per Cent of Capacity.
Seasonally Adjusted

Manufacturing
SERIES
M A N U F A C T U R I N G , TOTAL
P R I M A R Y PROCESSING
A D V A N C E D PROCESSING

1973J
HJGHI
1
88.01
J
93.8|
1
85.5|
1

1975
LOB

M O N T H L Y CAPACITY U T I L I Z A T I O N
1979
MAR. -_,A£B*.™N4X
JUNE
. JnLI_
AUG.

?»P.

OCTT

NOV.

PEC.

_ JAIL.

69.0

87.1

85.3

86.3

86.2

86.1

64.9

85.3

84.9

84.6

84.3

84.3

63.2

88.6

87.8

83.0

37.9

88.9

87.7

87.3

86.8

86.7

69.4

86.2

83.8

85.5

85.2

34.6

83.3

64.2

83.9

83.4

35.81
85.8
1
83.3|
83.4
1^
UTILIZATION

1980|
Jl

1979
I

II

OUTPUT
1979
I

M A N U F A C T U R I N G , TOTAL

153.4

11

153.1

III
153.3

P R I M A R Y PROCESSING

162.1

161.9

163.4

ADVANCED PROCESSING

148.7

148.5

148.1

1980

CAPACITY
IV

1
153.0| 152.61 176.9
1
1
161.81 159.5| 182.7
1
148.2J 143.9J 173.8

178.2

III

179.5

184.2

135.7

175.0

176.2

1980|
II
1
180.8] 182. 3|
I
I
187.21 188.7)
1
177.4| 178.8|
IV

1979
I

II

III..

ESS*

1A£.

83.9

83.0

84.6

83.1

83.5

81.9

:v

_,

1583
,*

1

86.7

85.4

85.9

84.6|

33.7

84.5

88.7

87.9

88.0

85.6

84.8

84.0

|
j
86. U |
1
33.t|

1
DEC. I
1
36.0|
1
|
83.4|
1
84.2|
1
1
90.7|
1
91. 1|
I
89.5|
97.5|
90.1|
1
1
86.2|

1980
JAN.

FEb.

1AR.

86.0

85.2

84. 4

83.4

82.4

81.3

83.0

80.9

90.7

89.8

88.9

90.9

89.8

89.2

88.8
95.7
90.3

89.5
92.7
89.2

36.5

86.2

93.3

Industrial Materials
MONTHLY CAPACITY UTILIZATION
SERIES
MATERIALS, TOTAL
D'JfcABLE GOODS M A T E R I A L S
METAL MATERIALS
N O N D U R A B L E GOODS MATERIALS
T E X . , PAPER, & CHEW. MAT.
T E X T I L E MATERIALS
PAPER M A T E R I A L S
CHEMICAL MATERIALS
E N E R G Y MATE&IALS

1973J
HIGHI
1
92.6|
1
1
91.5|
I
9&.2|
1
1
94.5|
1
95.11
1
92.6|
99.4|
95.5J
1
1
94.6|
f

1975
LOW

1979
I MAR.

APR.

!UY

«?JN,E

JU.LY

AU3,

SEP*

OCT T

NOV.

69.4

88.3

87.0

87.4

87.6

87.9

86.9

86.8

86.6

86.4

63.6

87.5

85.4

86.3

86.9

37.3

85.5

85.2

84.7

83.9

68.6

90.6

38.2

87.0

90.4

92.4

89.8

88.4

85.1

84.7

67.2

90.0

89.6

39.8

89.2

89.6

90.. 0

90.1

90.1

90.4

65.3

90.0

90.0

90.2

89.9

90.2

90.7

91.1

91.0

91.0

57.9
72.4
64.2

86.8
93. S
89.8

65.3
94.3
90.1

86.5
93.6
90.2

89.4
94.1
89.1

88.8
97.3
88.3

87.5
97.4
89.8

90.3
98.1
89.7

90.0
98.2
89.5

89.2
97.9
89.3

84.8

87.5

87.2

86.6

86.8

87.1

36.1

86.2

86.3

87.2

1979
I

MATERIALS, TOTAL
DURABLE GOODS MATERIALS

155.5

-II155.6

III

156.6

158.4

157.7

158.7

124.7

124.3

126.9

N O N D U R A B L E GOODS MATERIALS

172.2

173.4

175.7

TEX., PAPER, 6 CHE3. MAT.

179.1

181.3

184.3

118.2
136.9
222.7

119.6
140.7
224.8

122.4
147.0
226.6

127.9
,

123. 1
.

128.3

METAL MATERIALS

TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS
ENERGY M A T E R I A L S
NOTE:

86.3

A
OUTPUT

UTILIZATION

CAPACITY
IV
I
156.3J
1
1
156.31
I
119.51
1
1
178.31
1
186.91
I
123.7|
148. 4J
230.21
I
1
129.1|
I

1980|
11

1979
I

155.61 176.7
154.5

II

178.1

III

179.5

181.5

183.0

184.5

139.8

140.3

140.7

178.9

191.7

193.5

195.3

1%.5

199.4

201.3

203.2

136.9
148.6
247.2

137.3
149.6
250.3

137.7
150.6
253.3

129.31 146.7 147.5
LT
.-

143.3

1980|
II
I
181.0) 182.5)
1
1
186.0J 187.7
1
IV

1979
I

II

III

I

88.0

87.3

87.2

87.3

86.2

86.0

89.2
1
1
197.31 199.1
1
205.31 207.3
1
133.11
151.6|
256.3|
1
I
149.21 149.8|
1

1S80
I

IV

88.5

90.2

89.8

89.6

89.9

89.8

90.0

90.7

86.3
92.1
90.1

87. 1
94.0
89.8

38.9
97.6
89.5

87.1

86.9

86.5

85.2
" 1
1
84.0|
1
84.7|
1
|
90.4|
1
91.0|
1
89.6|
97.91
89.8|
|
1
86.6|
1

82.3

89.3
90.0

86.3

ESTIMATES OP ACTUAL OUTPUT AND CAPACITY OUTPUT ARE BOTH EXPRESSED AS PERCENTAGES OP 1967 ACTUAL OUTPUT. ESTIMATES OF
CAPACITY UTILIZATION IN PERCENT A R E CALCULATED AS RATIOS 0? (1) THE FEDERAL RESERVE'S SEASONALLY ADJUSTED INDEXES OF INDUSTRIAL PRODUCTION TO (2) 1HE C02RESPOURING INDEXES OP CAPACITY.
INDUSTRIAL HATEEIALo ARE HEMS BOTH PRODUCED AND USED AS INPUTS BY MANUFACTURING PLANTS, MIMES AND UTILITIES; INDUSTRIAL MATERIALS COVER M A N Y OF THE ITEMS REPRESENTED IN THP PRIMARY
PROCESSING GROUPING OF MANUFACTURING AS WELL AS SOME OF THE OUTPUT OF MIHES AND UTILITIES — SUCH AS IRON ORE. CRUDE OIL, AND
ELECTRICITY SOLD TO INDUSTRY.
THE 1973 HIGHS AND 1975 LOWS IN CAPACITY UTILISATION, SHOWN IK TH5 TABLES ABOVE, ARE SPECIFIC TO EACH SERIES AND HAY OCCUR IN
DIFFERENT HONTRE. INDUSTRIAL PLANTS USUALLY OPERATE AI CAPACITY UTILIZATION RATES THAT ASS WELL BELOW 100 PERCENT; NONF CF
THE BROAD AGGREGATE SERIES HAS EVER INDICATED A 100 P2EC5KT USE CF CAPACITY. CAPACITY UTILIZATION RAT^S AVERAG2D ABOUT 8J
PERCENT FOR MANUFACTURING FROM 1955 IHCOUGH 1978, AND ABOU1 35 PERCENT FOR INDUSTRIAL MATERIALS FOR 1967 IHROUGH 1978. IN
MANUFACTURING AS A WHOLE, UTILIZATION RATES AS HUH AS 90 PERCENT HAV2 B2EN EXCEEDED ONLY IN WARTIME. THE PEAK RATES OF UTILIZATION IN 1973 W2RE ASSOCIATED HUH SIGNIFICANT UPWARD PRESSURP OS PRICES.
THE METHODOLOGY AMD THS SEiiISS A&E DESCRIBED IN FE.£E1£L R£S.EaV£ rt£ASUR££ 0_£ CAPACITY AND CAPACITY UTILIZATION. REVISED DATA
ARE FOUND IN "CAPACITY UTILIZATION:
MANUFACTURING AhD MATERIALS, J A N U A R Y 1967—DEC21BER 1978." BOTH PUBLICATIONS 1AY BE OBTAINED FROM PUBLICATIONS SERVICES, BOARD OF JOVE^NORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. 20551