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FEDERAL RESERVE statistical release
G.3 (402)

For Immediate release

CAPACITY UTILIZATION
Manufacturing, Mining, Utilities, and Industrial Materials

December 14,1988
9:15 a.m

Capacity utilization in manufacturing, mining, and utilities increased 0.2 percentage
point in November to 84.2 percent, the highest level since November 1979. The operating rate in
manufacturing and utilities both rose 0.2 percentage point in November; the gain in mining was
0.6 percentage point.
Within manufacturing, utilization for primary processing industries rose
0.4 percentage point in November; the rate for advanced processing increased only
0.2 percentage point. The operating rate for primary metals industries continued its recent
upturn, reaching its highest level since December 1978. Since August, most of the rise in
utilization for primary metals has come from increased production of steel mill products. Among
advanced processing industries, both fabricated metal products and motor vehicles and parts
showed operating rate gains of nearly a percentage point in November. The rise in fabricated
metals reflects widespread gains while the increase in motor vehicles and parts was related to
higher truck production.
Utilization at producers of industrial materials increased 0.4 percentage point in
November to 84.8 percent. Gains were especially strong at producers of energy materials owing
to a significant rise in coal production.

Capacity Utilization: Summary
Percent of capacity, seasonally adjusted

1973
Series

1975
Lou

1978
-80

1982
Lov

1967
-87

1988

Avq.

AUG

I SEP

|OCT

I NO*

88.6

72. T

do.9

69.5

81.5

83.8

83.7

84.0

84.2

Manufacturing
Durable
Nondurable

87.7
87.4
bti.d

69.9
67.9
71.8

86.5

80.6
78.7
83.5

84.0
82.3
86.4

84.0
82.5
86.2

84.3
82.9
86.4

84.5
8J.1

87^0

66.0
63.7
74.2

86.5

Mining
Utilities

92.8
95.6

87.8
82.9

95.2
88.5

76.9
78.0

86.7
86.9

82.2
83.9

82.2
80.3

81.6
BO.d

82.2
81.0

92.0

70.5

89.1

63.5

82.2

84.3

84.1

84.4

84.8

Total Industry

Industrial Material*




CAPACITY UTILIZATION

NOVEMBER DATA

SEASONALLY ADJUSTED. PERCENT

110
TOTAL INDUSTRY
TOTAL MATERIALS

00

70

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

—

50
110

MINING
UTILITIES

00

70

1 I I I 111111I 1I 1 I

—

I I I l I l l l I l I I I I I

50
110

MANUFACTURING
ELECTRICAL
MACHINERY

00

NONDURABLE

70

1 11I 11I 1I 11I 11 1

—

-V
—

i i i 111111111111

50
110

TEXTILE, PAPER AND
CHEMICAL MATERIALS

70 —

50 —

111111111111111
1973

1976




1979

1982

1985

30

1988

1973

1976

1979

1982

1985

1988

MANUFACTURING, MINING AND UTILITIES
Table 1

Capacity Utilization
Monthly, seasonally adjusted, percent of capacity
1973 i 1975 I 1978 I 1982 1 19b7 I 1987 1
Series
H i u h I Lov 1 -6J 1 Low | -87
I NO? |_ 1988
I
dxgfa l
HAR | APR | HAY 1 JUN | JUL 1 AUG 1 SEP | OCT I
1 Avq. 1
Total Industry

88.b|

1
72.11

Manufacturing

87.7|

1

Primary processing
Advanced processing

1

1
bd.3|

86.01

i

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. trana. eqp.
Instrunftonts
Other durables
Nondurable manufacturing
Food and kindred products
Textile mill products
Paper and products
Chemicals and products
Petroleum products
Rubber and plastics products
Other nondurable*
Mining
Utilities
Electric utilities

I

89.31
101.91
105.8|
95.6|
85.01
89.01
85.71
97. 11
1

77.01
89.21
87.71
88.81
85.8|
92-11
95.61
88.61
9S.6J
97.51
86.4|
i
92.8|
95.61
98.7J
1

67.91
67.1J
67.0|
66.6|
62. 11
64.7|
68.21
63.7J
52.7|
I
69.61
74.9|
b9.0|
•
71.81
77.6|
58.9J
b7.7l
69.21
83.7|
59.5|
72.31
1
87.8|
1
82.9|
83.01
1

NOV

1
8b.9|

1
69.5|

1
81.51

82. 1|

82.4

82.7

82.9

.J.U

83.7

83.8

83.7

84.0

84.2

66.5|

1
b6.0|
65.01
69.5|

80.6|

82.21

82.7

82.9

83.3

63.3

84.0

d4.0

84.0

84.3

64.5

tto. 6

87.8

87.4
82.4

87.2
82.5

87.6
82.7

68.0
82.9

63.71
62.91
45.81
37.61
60.6|
61.31
b2.9|
66.91
47.01
36.61
70.71
77.8J
o9. 1|

78.7J
78.31
79.61
78.6|
81.21
77.61
78.11
78.11
78.1|

91.71
89.41
92.41

74.21
76.5J
70.61
80.21
67.6(
68.81
71.2|
78.9J

83.51
82.21
85.01
88.51
78.91
86.91
84.81
66.0|

95.21

76.91

1
88.51
8
7.6|
i

78.0|
78.21

86.7|
•
86.91
88.01
1

89.1J
65. 1(
1
86.31
66.61
97-1|
100.3|
9 1 . 11
87.4|
86.01
89.9|
93-3|
93.3|
67.11
86.91
81.0|
•
1
6 7.0|
85.11
86.31
92.71

81.7|
80.1 |

I

87.01
60. 0|

86.9
80.7

8b. 9
81.2

87.0
81.7

d1.7

79.91
61.9|
88. 6|
88.8|
88. 31
79.4|
76. 1|
76.5|
80.41
70.2|
86.21
79.9|
82.0|

80.6
82.7
83.7
83.2
84.3
82.4
79.0
76.5
79.3
65. 8
87.6
80.0
82.4

80.9
81.9
83.7
83.5
84.1
82.3
80.1
77.3
80.5
69.3
86.6
80.2
82.2

81.6
81.8
87.5
88.0
66.6
82.9
81.4
77.4
83.8
75.3
86.4
80.3
82.2

81. /
83.0
65.8
83.0
89.5
83.1
61.6
77.4
63.3
75.3
86.2
61.0
81.3

82.3
62.1
89-5
89.7
89.3
83.8
62.4
78.2
81.5
71.4
86.7
62.5
81.4

62.3
82.3
86.8
88.2
89.6
84.0
82.7
78.4
82.0
70.7
85.8
62.5
80.9

82.5
82.4
90.9
90.9
90.8
84.1
82.9
78.1
82.6
74.2
85.8
82.9
80.7

82.9
82.1
92.0
93.4
90.0
84.2
82.9
78.5
84.5
77.0
85.8
83.2
81.0

65.61
79.81
92. 71
95.81
84.71
84.2|
88.81
86.4|
1

85.8
80.2
91.4
95.1
85.0
88.5
88.4
86.2

85.9
79.6
91.3
94.9
86.2
88.5
88.0
86.3

85.4
79.7
88.9
94.8
86.1
85.5
88. 1
85.4

65.5
79.7
88.3
*i3. 9
86.7
84.4
86.2
65. 6

66.4
60.6
90.2
95.9
88*1
85.2
88.3
85.8

6b. 4
80.4
89.3
94.8
88.6
86.0
87.8
86.1

86.2
80.1
88.4
94.4
88.8
83.8
87.3
86.4

86.4
80.6
87.7
94.8
89.1
86.1
87.3
86.2

80.6

82.3

80.8

81.2

82.5

62.2

82.2

81.6

82.2

81.0
83.2

79.3
82.2

79.7
83.5

60.6
64.9

81.5
66.4

83.9
88.9

80.3
84.4

80.8
84.6

81.0
84.8

i

1

77.71
83.01
81.61

81.5|

1

81.2|
82.81
1

83.1
92.4

85.0
83.1
78.3
65.4
76.7
85.9
83.2
81.0
86.5

84.3
85.9

Table 2

Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted
Series

1987
Q3

Total Industry

131.0

Manufacturing

135.7

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
A U lOfTiODt 1*38

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
Utilities
Electric utilities

OUTPUT
1
1988
1
yi
U2
U3
1
1
1 3 3 . 2 | 1 3 4 . 5 136.0 138.41

Q4

138.11139.6
1

141.5 144.0|

119.2 122.21123.0 123.9 125.81
145.d 147.61149.7 152.3 154.91
i

133.7
118.0
83.7
73.8
102.2
110.8
155.4
173.4
108.0
92.2
152.9
145.2
133.1
136.6
138.9
118.8
148.4
141.8
93. 5
1b5.7
140.7

136.91138.4
119.81121.5
90.5| 86.0
81.21 76.5
108.01104.1
114.31117.8
158.711b3.7
175-71 1/7.2
113.41110.6
102.81 92.6
152.91153.9
146.71149.0
135.41137.8
I
139.71141.4
139.01141.4
117.41116.2
146.31 149.0
144.6J146.6
94.7| 96.9
169. 1j 171.7
1U1.41143.0

100.7 104.31102.5

141.0
122. 1
87.3
75.8
109.1
119.7
169.6
179.1
117.9
109.9
151.5
151. o
138. 1
142.3
140.9
115.4
149. 1
149.5
95.9
173.4
144.5

143.31
122.51
91.81
80.21
113.7J
122. 11
174.1|
181.81
117.51
106.21
151.91
157. 1|
137.61
1
145.01
143.3|
116. 4J
151.41
154.61
94.91
175.3!
147.21
i

103.4 103.91

11 I.o 112.31114.7 111.9 115.01
130. * W L . bi 130.0 129. b 135. 1|

CAPACITY
1
1988
1
Q2
01
Q3
1
1
161.3 162.21163.1 164.2 165.21
1
166.7 167.71168.9 170.2 1 7 1 . 5 |
1
139.8 140.61141.6 142.7 1 4 3 . 9 |
182.9 184.1(185.4 186.7 188. 1|
1
170.2 171.1|172.0 173.0 174.0|
146.1 147.2|147.9 148.4 148.91
102.6 101.6| 101.6 102.u 1O2.3|
9 1 . 1 8 9 . 8 | 89.2 89.3 89.51
124.1 124.61125.1 125.8 126.4}
142.3 143.0|143.8 144.6 145.51
20 5.4 2 0 6 . 7 ( 2 0 8 . 0 209.3 2 1 0 . 6 |
228.9 2 2 9 . 6 | 2 3 0 . 5 231.5 232.5|
141.2 141.7| 142.3 142.8 143.3|
148.6 149.3-1 149.8 149.9 1i>0.1|
172.1 173.21 174.2 175.3 176.41
183.3 184.91186.6 188.3 190. 11
164.0 165.8|167.3 168.6 1 6 * . 9 |
i
1
161.7 163.1|164.6 166.3 168.01
172.8 174.1|175.4 176.8 178.21
126.1 126.61 127.5 128.9 130.41
153.6 154.91 156.2 157.7 159.21
169.6 170.5| 171.7 173.2 174.61
110.5 110.81 111.1 111.4 111.6|
188.8 191.31193.9 196.8 199.71
161. to 163.91• 166.2 168.6 170.91

1987
U3

1987
Q3

UTILIZATION
1968
414

Q3

Q1

1

81.2

82.11 82.4

82.8

83.8

81.4

82.31 82.7

83.2

84.0

65.3
79.7

86.91
80.11
1
60.0|
81.41
68.8|
90.41
86.7J
79.9|
76.81
76.51
80.0J
68.9|

86.9

80.7

86.8
81.5

87.4
62.4

80.4
82. 1
84.7
85.8
83.2
81.9
78.7
76.9
77.6
61.8
8 8 . 3 | 88.3
7 9 . 3 | 79.9
81.71 82.3

81.5
82.2
85.7
84.8
66.8
82.7
81.0
77.4
82.5
73.3
66.4
80.5
81.9

82.4
82.3
89.7
89.6
89.9
64.0
82.6
78.2
82.0
72.1
86.1
82.6
81.0

87.8
87.0

85.61
79.8J
92.81
95.7|
84.81
d5.4|
88.4|
86.3|

85.9
80.6
91.1
95.4
85.3
87.2
88.5
86.1

85.6
79.7
89.5
94.5
86.3
86.1
88.1
85.7

86.3
80.4
89.3
95.1
88.5
85.0
87.8
66.1

76.5
80.7
81. b
81.0
82.4
77.8
75.7
75.7
76.5
62.0
88.6
79.2
81.2
85.7
80.4
94.2
96.b
83.6
84.b

1

129.0 128.4|127.7

127.0 126.21

78.0

81.21 80.3

81.5

82.3

138. B 139.4(139.8
152.9 154.0J154.8

1
140. 1
155.4 140.41
156.1|

60.5
65.1

60.61 82.0
8 2 . 2 | 84.0

79.9
83.5

81.9
86.6

Note. Data 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




Q4

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

INDUSTRIAL MATERIALS
Table 3

Capacity Utilization
Monthly, seasonally adjusted, percent of capacity
Series

Industrial Materials

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

Energy materials

1973 I 1975 1 1978 1 1982 | 1967 1 1987 |
Low J - 8 0 1 Low l -87
| MOV | . -1288
I
Hivih I
AYQ. I
HAE
I
I
92.0)
I
1
91.81
I
99.2|
1
106.01
95.71
1
1
91.11
I
92.8|
1
98.41
92.51
I
1
94.6|
1

I
70.5|
1
1
64.41
1
67.11
1
66.41
73.01
1
1
66.7|
1
64.8|
1
70.6J
64.4)
1
1
86.91
1

I
89.11
1
1
89.81
1
93.61
1
98.91
97.4|
I
1
86.11
1
89.41
1
97.31
87.9|
I
1
94.01
J

1
68.51
I
1
o0.9l
1
45.71
1
36.11
58.8|
1
1
70.71
1
68.8|
I
79.9|
63.51
1
1
82.31
1

I
82.21
I
1
1
79.0|
t
77.71
1
1
80.21
87.3J
J
1
1
83.41
1
83.81
I
91.71
81.01
I
1
1
89.01
J

I
82.9|
1

,
I

AUG I SEP I OCT 1

A P E I HAT

NOV

82.4

82.9

83.0

83.2

84.4

84.3

84.1

84.4

84.8

79.01
1
83.31

79.1

79.7

80.8

80.7

81.7

81.4

81.9

82.3

b2.7

78.3

79.3

82.1

UO.tf

84.9

83.4

86.0

87.1

87.4

89.7|
94.81
I

86.5
99.2

83.4
99.5

89.7
98.8

87.5
99.5

*5.1
9d.O
97.5
100.8 100.5 100.3

90.8
99.8

89.01
1
91.01
I
98.7|
88.6|
1

88.3

88.7

87.7

87.4

d8.9

dd.8

88.2

88.7

89.0

89.9

90.1

88.8

88.6

90.4

90.3

89.5

90.0

90.2

97.8
87.5

98.1
88.0

98.1
86.9

97.1 100.0
87.0
b8.8

9e.4
89.0

97.9
88.3

98.2
89.1

84.1

84.5

83.3

84.¥

do.6

85.1

84.7

65.71
1

86.2

85.$

Table 4

Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted
UUlJfUI

Series

Industrial Materials
Durable goods materials

1987
U3

Q4

1988
Q1

83.8

Raw steel
Aluminum

77.0
83.6

91.4( 8 6 . 2
1
79.5» 7 7 . 7
88.41 9 2 . 5
1
1

Textile, paper and chemical materials
Pulp and paper materials
Chemical materials
Energy materials

Q3

1

1

1
122.51122.5 124.0 126.5|
1
1
1
1
125.7 130.31131.5 134. 1 137.11

119.2

Metal materials

Nondurable goods materials

1
02

128.2 130.11129.4
1
130.5 133.01131.6
J
144.6 145.11145.7
130.2 135.51 133.5
100.0

88.1

92.71

1987
Q3

85.91
97.2J

1
4
1
1
102.11100.9 100.6 102.4|

gj

1987
Q3

1988
Q1

02

Q3

81.U

82.9|

82.5

83.0

84. 3

76.7

I
I
79.11 79.4

80.4

81. 6

80.8

84.8

Q4

I

109.4
90.8
94.4

144.7

1

132.4 135.3|
1
145.9 148.91
1J5.7 1J9.bJ

02

147. 81 148.5 149.3 150.1
1
1
1
163.9 164.7| 165.7 166.8 167.9

1
1

130.4 132.91

1988
01

147.2

1

77. 1
94.8

04

144.4
145.1
150.9
120.1

1
108.91 108.8
1
89.4| 88.7
93.91 94.3
1
1
145.61 146.8
1
145.41 146.7
1
146.2\ 147.6
152.01 153-5
1
1
119.7

109.1 109.4

76.5

84.01 79.2

88.7
96./

84.8
86.6

88.91
94.11
1
1
89.3|
1
91.5|
1
99.2J
89. 11
1

1
88.7
95.5

148.3 149.8 I

88.6

148.5 150.2 I

90.4

149.2 150.7
155.4 157.3

99.6
86.3

119.4 119. 1

83.3

87.5
98.1

96. 8
86.9
99.2 100, 5

88.1

87.9

88. 7

89.7

89.2

90. 1

98.7
87.0

97.8
87.3

98. 8
88. 7

85.21 84.3

84.2

86. 0

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 raties 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
govern men t-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 t ' e primary processing grouping of manufacturing, as well as some
of the output of the advanced processing industries, mines, and utilities—such as iron ere crude
oil, semiconductors, and electricity sold to industry.




Perspective. The historical highs and lows in capacity utilization shown in the tables above are
specific to each series and did not all occur in the same month. Industrial plants usually operate at capacity utilization rates that are well below 100 percent: none of the broad aggregates
has ever reached 100 percent. For mining, manufacturing, and utilities as a whole, and for total
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 the 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 Services, 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 1989. At 9:15 a.m. on January 18, February 15, March 16, April 14,
May 15, June 15, July 14, August 16, September 15, October 17, November 14, and
December 15.