Full text of G.3 Capacity Utilization, Manufacturing, Mining, Utilities and Industrial Materials : April 18, 1988

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FEDERAL RESERVE statistical release
G.3 (402)

For Immediate release

CAPACITY UTILIZATION
Manufacturing, Mining, Utilities, and Industrial Materials

April 18, 1988

Capacity utilization in manufacturing, mining, and utilities
edged down to 82,3 percent in March, after a small decline in February.
Operating rates for both manufacturing and utilities declined in March
while utilization for mining rebounded. Utilization at materials
producing industries was unchanged in March at 82.4 percent.
The recent decreases in overall utilization principally
reflected a slight pullback by primary processing industries.
Utilization for this group of manufacturers has fallen more than a
percentage point since December, when it reached its highest level since
March 1979. Even with those declines, the average utilization rate for
primary processing during the first quarter of 1988, at 86.7 percent,
was well above its 1967-87 average of 81.7 percent. The operating rate
for advanced processing industries rose throughout 1987, but has been
little changed since January; in contrast to primary processing,
utilization for this grouping currently is only slightly above its
1967-87 average.
Within manufacturing, operating rates in primary metals and
textiles have receded somewhat from the very high levels attained in
December 1987. Utilization rates for nonelectrical machinery and
petroleum refining continued to move higher last month while rates for
the electrical machinery and fabricated metal products industries
remained well above yearend levels. The operating rate at automobile
assembly facilities rebounded in March, although it remained in the
relatively low range that has prevailed for the past year.

Capacity Utilization: Summary
Percent of capacity, seasonally adjusted
Series

1973
High

1975
Low

1978
-80
Hiqh

1982
Low

1967
-87
Avq.

1987
DEC

1988
| JAN | FED

| SAH

88.6

72,1

86.9

69.5

81.5

82.1

82.6

82.4

82.3

Manufacturing
Durable
Nondurable

87.7
87.4
88.8

69.9
67.9
71.8

86.5
80.3
87.0

68.0
63.7
74.2

80.6
78.7
83.5

82.6
80. 1
86.4

82.8
80.2
86.5

82.6
80.1
86.2

82.5
80.2
85.*

Mining
Utilities

92.8
95.6

87.8
82.9

95.2
88.5

76.9
78.0

86.7
86.9

81.5
80.0

60.4
82.4

79.8
82.8

80.3
81.8

92.0

70.5

89.1

68.5

82.2

83.6

83.0

82.4

82.4

Total Industry

Industrial Materials




CAPACITY UTILIZATION

MARCH DATA

SEASONALLY ADJUSTED, PERCENT
110
TOTAL INDUSTRY
TOTAL MATERIALS
90

70

50
110
MINING
UTILITIES

90

70
MANUFACTURING

50
110
MANUFACTURING
ELECTRICAL
MACHINERY
90

NONDURABLE

DURABLE

\

/

r

70

V
50
110
RAW STEEL

TEXTILE, PAPER AND
CHEMICAL MATERIALS
90

70

50

30

1973

1976




1979

1982

1985

1988

1973

1976

1979

1982

1985

1988

MANUFACTURING, MINING AND UTILITIES
Table 1

Capacity Utilization
Monthly, seasonally adjuated, percent of capacl
Series

Total Industry
Manufacturing
Primary processing
Advanced processing
Durable manufacturing
Stone, clay and glass products
Primary metals
Iron and steel, subtotal
Nonferrous metals,^ subtotal
Fabricated metal products
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Automobiles
Aerospace and misc. trans, eqp.
Instruments
Other durables
Nondurable manufacturing
Food and kindred products
Textile mill products
Paper and products
Chemicals and products
Petroleum products
Rubber and plastics products
Other nondurables
Mining
Utl ltles
1
iectrlc utilities

TTTJT

19-75 | 1978 j 1982
I -80
J Low

Higii j LOW
88.61
J
87.7J
I
91.9|
8b.01
|
101.91
105.81
95.6J
85.01

89.0|
85.71
97.1|
I
77.0|
89.21
87.7|
I
88.81
85.8|
92.11
88.61
99.61
97.51
86.41
I
92.8|
I
95.6)
98.71
i

L

I
86.91
1
66.51

I
69.91
1
89.11
68.31
d5.1|
71.1|
1
I
67.9|
86.3|
67.11
86.bl
67.0|
97. U
6 6 . 6 | 100.31
62.1|
91.11
64.71
87.41
68.2|
86.0|
63.71
89.91
52.7J
93.31
93.31
I
87.11
69.61
8d.9l
74.91
81.01
69.0|
1
1
71.8J
87.0|
77.61
85.11
58.9|
88.31
67.7J
92.71
69.2|
82.91
83.71
91.71
59.5|
89.41
72.31
92.41
1
J
87.81
95.21
1
I
82-91
88.51
83.01
87.61
I

1967
1987
-87
1 Avu. 1
r~JUL~7~AUG~rSEP~r0CT~r*0V I D K c " j a i ~ l
I

I

b9.5|

81.5|

bU.0|
I
c>5.0|
69.51
1
63.71
62.91
45.81
37.61
60.81
61.31
62.S|
66.91
47.01
36.6J
70.71
77.81
69.11
I
74.21
76.51
70.6|
80.21
67.6|
68.81
71.21
78.9|
I
76.91
1
78.01
78.21
I

80.6|

1
1
81.71
80.1|
I
78.71
78.3|
79.b|
78.61
81.21
77.8|
78.1|
78.1|
78.1|

1
77.71
83.01
81.6|

I
b3.5l
82.2|
85.0|
88.51
78.91
86.9|
84.81
86.01

I
86.71
1
86.91
88.01
1

1
79.7|
I
80.3|
1
83. 11
79. 1|

I
77.9|
83.0|
74.2|.
70. 11
80.21
78.31
73.01
74.01
83.0|
76.81
90.0|
77.71
81.9|
I
83.9|
80.4)
89.81
92.31
80.51
83.8)
85.91
85.7|
1
75.5|
I
78.21
81.8|

FEiTali

>

I

81.1

81.4 81.1 di.* d2.1 d2.4J

81.5

81.5 81.3 d2.U d2.2 d2.6| 82.6 82.o

85.4
79.8

85.3
79.9

85.1
79.5

60. 1

d7.0
oO.U

d7.b| 87.2
d0.3| 80.7

8b.5
80.7

H6.3
80.6

78.6
81.5
79.2
77.4
81.6
78.2
75.8
75.4
77.5
66.5
88.7
78.7
82.0

78.6
79.7
83.0
83.4
82.3
77.4
75.1
76.1
77.2
59.0
89.4
79.8
81.2

78.4
81.0
82.b
82. i
83.1
78.0
76.1
75.7
74.7
60.7
88.4
79. ^
80.3

80. 1
di. J
88. 6
*0.9
85. i
79.5
76. b
76.i>
62. U
72.5
<*8.9
79.6
81.2

79.9

80.2
81.3
85.3
87.4
82.4
81.7
78.3
76.9
77.2
59.0
88.7
80.0
81.6

80. 1
81.6
84.2
64.9
83.4
82.0
78.2
77.1
76.7
60.6
88.7
80.0
81.1

85.9
80.3
93.9
97.1
83.2
85.3
89.0
87.4

85.8
80.3
95.0
96.9
83.9
84.1
87.3
87.2

85.S
80.5
93.6
95.7
83. d
84.5
87.1
86.3

dO. 1 |
di.41
89. 1|
91.6|
85.8 |
80.81
77.8|
76.51
77.7|
63.91
87.91
78.51
81.8|
1
86.41
80.31
93.3|
97.0)
86.51
d6.6l
dd.8|
8b. 21

80.2

d1.9
d8.6
66.ii
titi.3
79.4
76.1
7b.5
80.4
70.2
88.2
79.9
S2.0

86.5
80.7
91.5
96. 1
86.9
86.8
88.3
86.6

86.2
81,0
91.0
94.8
86.2
8b. 9
88.0
86.5

76.8

78.2

79.1

80.o d1.5

d1.5l 80.4

79.8

80.3

80.2
85.9

81.3
86.3

80.0
83.2

80.5
82.5

82.8
64.8

81.8
83.8

79.5

92.4
*4.5
dJ.1
<*:>.:>
«7.5
86.2

db.6
79.8
92.7
95. 6
B4.7
d4.2
dB.ti
db.4

82.6 82.4 82.3
62.5

84.5
82.0
78.7
77. 1
79.2
b5.8
87.7
79.7
80.0
85.9

87.9

1
U1.2
82.8

60.0J 82.4
81.41 84.3

Table 2

Output, Capacity, and Capacity Utilization
Quarterly, leaaonally adjusted
OUTPUT
Series

Total Industry
Manufacturing
Primary processing
Advanced processing

1987
01

02

03

1

126.9

128.2 131.0 133.21 134.51
I
1
131.6 133.2 135.7 138. 11139.61
1
1
114.3 116.1 119.2122.21122.71
142.0 143.5 145.8 147.61 149.61

J

133.7
118.0
83.7
73.8
102.2
110.8
155.4
173.4
108.0

Durable manufacturing
Stone, clay and glass products
Primary metals
Iron and steel, subtotal
Nonferrous metals, subtotal
Fabricated metal products
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Automobiles
Aerospace and misc. trans, eqp.
Instruments
Other durables

130.5
120.2
75.0
62.4
98.7
109.1
145.8
169.9
115.4
113.7
152.8
140.6
130.7

131.4
118.6
77.3
66.3
98.0
109.9
150.6
170.0
109.7
103.1
152.6
143.1

132.2

152.9
145.2
133.1

Nondurable manufacturing
Food and kindred products
Textile mill products
Paper and products
Chemicals and products
Petroleum products
Rubber and plastics products
Other nondurables

133.1
136.1
110.9
139.9
135.8
93.1
156.7
134.6

135.7
137.0
116.5
141.5
136.2
93.0
162.7
138.4

136.6
138.9
118.8
148.4
141.8
93.5
165.7
140.7

Mining
Utilities
Electric utilities

1987
01

1968
01

04

92.2

1987
01

02

79.5

79.9 81.2

80.0

60.5 81.4

138.2 139.0 139.8 140.61141.61
180.3 181.6 182.9 184.11 16!>.4|

82.7
78.7

83.5
79.0

85.3
79.7

170.2
146.1
102.6
91.1
124.1
142.3
205.4
228.9
141.2
148.6
172.1
163.3
164.0

77. :>
83.4
72. 1
66.5
80. 1
77.5
71.9
74.7
62. J
77.3
89.9
78.1
81.:>

77.6
61.7
74.8
71.7
79.2
77.6
73.8
74.5
76.0
69.7
d9.2
78.8
di.5

78.5
80.7
81.6
81.0
82.4
77.8
75.7
75.7
76.5
62.0
88.8
79.2
81.2

83.7
79.9
92.5
80.9
84.6
85.2
85.5

d4.7
79.9
92.7
92.8
81.9
84.4
87.3
8b.7

85.7
60.4
94.2
96.6
83.6
84.6
87.8
87.0

75.8

76.3

78.0

78.5
81.2

78.3
63.4

80.5
85.1

159.5
164.5

168.4
144.0
104.0
93.8
123.2
140.8
202.8
227.4
140.2
102.81 92.61 147.1
170.0
152.91154.01
160.0
146.71149.11
1o0. 3
135.4| 135.41
1
1
158.9
139.7| 141.91
170.3
139.01
1
125.2
117.41
1
151.1
148.3|
1
167.8
144.61
I
109.8
94.71 96.91
183.8
169.11
|
157.5
141.41143.61

169.3
145. 1
103.3
92.5
123.7
141.5
204. 1
228. 1
140.7
147.6
171. 1
181.6
162.2

I

I

130.4 129.7 129.0 128.41127.71

I

1988
01

Q4

1

82.11 82.4
I
8 2 . 3 | 82.6
1
8 6 . 9 | 86.7
8 0 . 1 | 80.7

I

161.7 163.1)164.61
172.8 174.1J
1
1
126.1 12b.bj
I
153.6 154.91
1
169.6 170.51
110.5
188.8
|
161.8 163.9|166.21

I

"l

I

171.11172.01
147.21
|
101.dj101.61
89.81
I
124.bl
1
143.O|14J.6|
206.7|20d.0|
229.61230.5|
141.7|142.3J
149.3|149.81
173.21174.21
184.9}18b.61
165.81167.31

I
160.3
171.6
125.7
152.4
168.7
110.1
186.3
159.6

03

I

165.6 166.7 167.7|1bd.*|

I

I

137.7 138.3 138.8 139.4|139.81
150.8 151.9 152.9 154.01154.81

Note. Oata for output are percentages of 1977 output as shown in the Federal Reserve's seasonally adjusted indexes of industrial production. Capacity is also expressed as a percentage of




04

1

i

99.0 100.7 104.31 102.41
I
I
108.1 108.3 111.8 112.31 115.11
122.5 126.6 130.2 126.6| 130.51

03

I

136.91 138.0|
119.81
1
90.51 86.01
81.21
1
108.01
1
114.31117.81
158.71 163.11
175.71 177.61

I
98.8

1
1986 1
01
1
|
1
160.4 161.3 162.21163.11

Q2

80.01
81.4|
88.61
90.4|
86.7|
79.91
76.8|
76.5|
80.0|
68.9|
88.31
79.3|
81.71
I
85.6|
79.8|
92.81
95.7|
84.8|
85.4|
88.4|
86.3|
I
61.21
I

80.2
84.7
81.9
78.4
77.0
77.7
61.8
88.4
79.9
80.9

86.2

87.2
86.4
80.1

60.6| 8 2 . 3
82.2| 8 4 . 3

1977 actual output. Capacity utilization percentages are calculated as ratios of production to
capacity.

INDUSTRIAL MATERIALS
Table 3

Capacity Utilization
Monthly, seasonally adjusted, percent o capacity
I V / JT
Hiyh
Series

Industrial Materials

*<•

Durable goods materials

91.

Metal materials

99.

Raw steel
Aluminum
Nondurable goods materials
Textile, paper, and chemical materials
Pulp and paper materials
Chemical materials

Energy materials

91.

I
1

TJ71
Low

1 1 9 b / 1 1987 1
- d 7 J MAR 1
1 Avg. 1
1
1
1
j
b d . 5|
82.2|
78. 7|
1
1
i
1
75.21
o O . 91
7,.o!
I
77.7)
7|
68. 7|
I
1
3 b . 11
b0.2|
67. d|
B7.3J
79.4J

I

19/B I
Low
-dd
1 dltjh 1

I

1

oj
I
81
2|
|
01

1
11

92.

70.

51
1

b4.

<H

8 , . 1J
1
1
d>.
I

b7.

93.
I

i

bb. 4 |
97.

73.0J
1
1
ou.
(
b 4 . 8|

b4.

94.

8b.

1

dd.

u

89.

1

7 0 . 7J
j

1

1988

81. l

62. 1

7o . 6

77. 0

78.3

.5

78. J

86 . 5
88 . 6

88. 5
90. 3

8 8 . tt

88 . 6

90.0

90

81

76.5
73.9

77

79.5
8b. 8

84. 8|
j
85. 8|
94. 6|
82.2|

. 1

1 JLL

I OCX |

d2.

3|
J

I

dj.

1

Jkl
d3.

u

fEB

|

HAS

82 .4

82. 4

1
79 . 0

1
d U . 01 7 9 . 6

79. 0

79.1

d2.-

d3 . 3

do. 3|

1

79. 1

79. 6

d 7. d
9 1. d

d9

.7
.8

d 9 . 21 90. 3
97. 1

85. 7
97. 9

80. 7

08.^

**

.J

9 0 . BJ 8 9 .
1

1

88. 5

88. 5

.5

90. 7

90.4

.1 .0

93.

91. 2

90. 4

90. 5

100.5
85. 1

99 . 9
86 . 4

98. 5
87. 4

97.4

98
dd . 6

101.
*0.

6 | 100. 5
91 8 8 . 6

98. 2
88. 3

82.4

84 . 0

83. 5

.7

d4.

1
8| 84. 7
1

84. 1

80.

1

1
J

|

7 9 . 91
b3. 5|
1

1
J
94. 0|
1

83.8|

od.

97.
87.

*H
1
1
91
1

83.4|

19ti7
JUL 1 AUG ]
80.6

1
1

1

|

|
9b. 4 1
9 2 . 51
i
1
1

1

i

91.7|
81.0|
I
1
89.01
1

1
80. 8|
1

d5

84. 0

Table 4

Output, Capacity, and Capacity Utilization
Q
tl
Quarterly,

ll adjusted
d j t d
seasonally

Series

1

1987
U3

Industrial Materials
Durable goods materials
Metal materials
Raw steel
Aluminum
Nondurable goods materials
Textile, paper and chemical materials
Pulp and paper materials
Chemical materials

115. 0

116.b

121. 4 122.9

1988

1987

19dd
C2

119- 2 122. 5 1 1 2 2 . b |
1
1
125. 7 130. 31 1 3 1 . 3

74. 7

77.U

d3. d

91.

60. 9
74. 9

67.8
77.8

77.0
83.b

79. 51

41 8 6 . 6

Q3

J

COM

0

1 1987

Q4

1988

Q1

U2

Q3

79. 4

81.

0

8 2 . 9 | 82.6
1
1

I 4 b . 1 146. 7 147. 2 147. 8| I 4 d . 5

78.7

J
163. 1 163. 9 164. 7| 165. 7
•
110. 0 109. 4 108. 9 1 1 0 0 . 8

74.8

75. 4

76.

7

79.1J

67.5

70.0

76.

5

8 4 . 0 | 79.6

65. 1
78.5

73. 6
81. 9

84.8
88.6

88.9|
94.11

84. o

86. 2

88.6

8 9 . 3 | 88.7
1
91.5| 90.7
1
99.21
89.11
1

162.3
110.6

79.2

i

as.

121. 2 124.0

128. 2 130. 1| 130.3
1
122. 3 125. 1
5 133.0|133. 1
1
136. 4 137.7 144. b 145. 1|
122. 9 125.3 130. 2 1 3 5 . 5 |
I
98. 3

98.7

93.6
95.4

92. 2
94. 9

90. 8
94. 4

89. 4|
93. 9|

1
1

1
Energy materials

t

U4

100. 0 102. 1J 100.9

143.8 144.7 145. 6 | 1 4 6 . 8
1
142.4 143.4 144.4 145. 41146. 7
1
142.U 143.9 145.1 146. 2 |
148.8 149.8 150.9 152.
142.9

120.3

1

1
1
120. 2 120. 1 119. 9 1 1 1 9 . 7
1

85.9

87. 2

90.4

95.5
82.6

95. 7
83. 6

99.6
86.3

81.7

62.

1

83.3

1
85.21
1

84.3

Explanatory Notes
Definition. This release contains estimates of output, capacity, and capacity utilization for the
nation's factories, mines, and electric and gas utilities. Output data are the Federal Reserve's
seasonally adjusted indexes of industrial production, which express output as percentages of
1977 output. The capacity estimates are expressed as percentages of 1977 output as well.
Capacity utilization percentages are calculated as ratios of production to capacity. The capacity indexes are based on a variety of data, including capacity data in physical units compiled
by trade associations, private and government surveys of capacity growth and utilization rates,
and estimates of capital stock growth. The concept of practical capacity is applied, which Is
defined as the greatest level of output that a plant can maintain within the framework of a realistic
work pattern, taking account of normal downtime, and assuming sufficient availability of inputs
to operate machinery and equipment in place. When the capacity indexes for individual industries are aggregated—for example to total manufacturing—no explicit account is taken of possible general equilibrium constraints such as emerging industry bottlenecks. Because of the
large and heterogeneous database, changes in utilization rates may be more meaningful in the
analysis of business conditions than any particular level of these rates.
Groupings. Estimates of capacity and industrial production for manufacturing industries are ~
aggregated to primary processing and advanced processing industries, to durable and nondurable
manufacturing industries, and to total manufacturing. The mining, manufacturing, and utilities
estimates aggregate to the total index. Primary processing includes textile mill products, paper
and products, industrial chemicals, petroleum products, rubber and plastics products, lumber
and products, primary metals, fabricated metal products, and stone, clay, and glass products.
Advanced processing includes foods, tobacco products, apparel products, printing and publishing, chemical products such as drugs and toiletries, leather and products, furniture and fixtures,
machinery, transportation equipment, instruments, miscellaneous manufactures, and
government-owned-and-operated ordnance facilities. Industrial materials are items produced and
used as Inputs by manufacturing plants, mines, and utilities. Industrial materials include many
of the items included in the primary processing grouping of manufacturing, as well as some
of the output of the advanced processing industries, mines, and utilities—such as iron ore, crude
oil, semiconductors, and electricity sold to industry.




Perspective. The historical highs and lows in capacity utilization shown in the tables above ai
specific to each series and did not all occur in the same month. Industrial plants usually opei
ate at capacity utilization rates that are well below 100 percent: none of the broad aggregate:
has ever reached 100 percent. For mining, manufacturing, and utilities as a whole, and for tota
manufacturing, utilization rates as high as 90 percent have been exceeded only in wartime.
Revisions. The first estimates for a month are published about the 17th of the following month
These estimates may revise in each of the next three months as new data become available.
After the fourth month no further revisions are undertaken until an annual or benchmark revision. The median of the revisions in the total manufacturing utilization rate between the first
and fourth estimate is 0.3 of a percentage point; that is, in about half of the cases, the absolute
value of the revision from the first to the fourth estimate is less than 0.3 of a percentage point
Sources. The basic methodology used to estimate ^he series is discussed in Richard D. Raddock, "Revised Federal Reserve Rates of Capacity Utilization," Federal Reserve Bulletin, Vol
71 (October 1985), pp. 754-66. Revised data for 1984-85 as well as historical utilization rates
since 1967 (1948 In the case of manufacturing) are included in the statistical supplement to the
September 1986 capacity utilization release. Copies may be obtained from Publications Sen
ices, Board of Governors of the Federal Reserve System, Washington, D.C. 20551
Rounding. Utilization rates are calculated from unrounded capacity and production indexes
Aggregates are derived from unrounded detailed components.
Release schedule for 1988. Approximately 11 a.m. on January 19, February 18, March 17
April 18, May 18, June 16, July 18, August 17, September 16, October 17, November 16 am
December 16.