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FEDERAL RESERVE statistical release
G.3 (402)
For Immediate release
CAPACITY UTILIZATION
Manufacturing, Mining, Utilities, and Industrial Materials
December 16, 1985
Capacity u t i l i z a t i o n in manufacturing, mining, and u t i l i t i e s rose
0.2 percentage point in November to 80.1 percent after a 0.5 percentage
point drop in October. The operating rates for both manufacturing and
u t i l i t i e s also rose 0.2 percentage point in November while u t i l i z a t i o n in
mining f e l l 0.4 percentage point. Utilization in total industry is now 1.6
percentage points below i t s 1967-84 average.
The overall operating rate increase in November for manufacturing
was composed of a 0.4 percentage point increase for durable manufacturing
and a slight decline for nondurables. Large operating rate increases came
in motor vehicles and parts, aerospace and miscellaneous transportation
equipment, and primary metals. The u t i l i z a t i o n rate for primary metals
industries, while s t i l l below i t s 1967-84 average, rose to i t s highest level
since September 1981. The operating rate for the electrical machinery
industry has stabilized since September and was 70.9 percent in November.
Utilization in this industry, which includes semiconductor manufacturers,
had fallen nearly 10 percentage points since the end of 1984.
Capacity u t i l i z a t i o n in total industrial materials went up 0.2
percentage point in November to 79.1 percent. U t i l i z a t i o n in both durable
goods materials and energy materials industries moved up while nondurable
goods materials u t i l i z a t i o n was unchanged. The operating rate for metal
materials industries rose 1.3 percentage points in November after gaining
2.1 percentage points in October.
Capacity Utilization: Summary
Percent of capacity, seasonally adjusted
1973
Series
High
1975
Low
1978
-80
1982
Low
Hxgk
1967
-84
Arg.
A0G
1985
I SEP
I OCT
I HOY
88.6
72.1
86.9
69.5
81.7
80.7
80.4
79.9
80.1
Manufacturing
Durable
Nondurable
87.7
87.4
88.8
69.9
67.9
71.8
86.5
86.3
87.0
68.0
63.7
74.4
80.7
78.8
83.5
80.7
78.7
83.7
80.3
77.9
33.8
79.3
77.3
83.6
80.0
77.7
83.5
Mining
Utilities
92.8
95.$
87.8
82.9
95.2
88.5
76.9
78.0
88.0
38.1
80.9
81.5
30.4
83.4
79-1
83.4
78.7
83.6
92.0
70.5
39.1
68.4
82.7
79.9
79.4
78.9
79.1
Total Industry
Industrial Materials
SEASONALLY ADJUSTED, PERCENT
110
TOTAL INDUSTRY
TOTAL MATERIALS
90
70
50
110
MINING
UTILITIES
90
MANUFACTURING
V
V /
70
V/
50
110
MANUFACTURING
REFINED PETROLEUM
PRODUCTS
90
NONDURABLE
70
50
110
MOTOR VEHICLES
AND PARTS
90
70
50
30
1970
1973
1976
1979
1982
1985
1970
1973
1976
1979
1982
1985
MANUFACTURING, MINING AND UTILITIES
Capacity Utilization
Monthly, seasonally adjusted, percent of capacity
1973
Series
High
j
Total Industry
88-6
Manufacturing
87-7
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
Automobiles
Aerospace and misc. trans, eqp.
Instruments
Other durables
91-91
86.01
87.41
89-3J
101.91
105.8J
95.61
85.01
89.01
85.71
97-11
1
77.Oj
89.2|
87.7J
1975 ] 1978 ] VJ82 1 1967 1 1964 j
Low | -80
] Low | -84 1 H V ] _ 1985
O
MAB I APR I HAT i JUN 1 JUL 1 AUG 1 SEP 1 OCT J NOV
Avg. J
1
1
1
1
86.91 69.5J 81.7| 81.31 81-0 80.8 80.o 60.5 3 0 . 2 80.7 80.4 79.9 80.1
72.1|
69.9]
68.31
71.1J
1
86.51
J
69.11
85.11
67.91 8o.Jj
67.11 Bo.oj
6 7 . 0 | 97.11
b o . 6 { 100.3J
62.1]
91.1]
b4.7l
87.4}
66.21 86.01
89.91
63.7J
52.71 93.3]
1 93.3J
69.61 87.1l
74.91 8d.9|
69.01 31.01
1
66.01
1
o5. 1]
69.5|
1
63.7J
6/.9|
45.81
37.61
60.81
61.3|
62.9]
6o.9j
47.0J
3b.6]
80. 7 J 61.2]
80.5
80-5
80.3
00. 1
60-1
30. 7
80.3
79.8
bO.O
81.7J
80.21
1
78.61
77.6J
80.51
80.11
31.31
77-7J
78.7]
78.51
77.6J
81o7l
80. 91
81.8
79.8
82. 1
79-7
81.5
79.8
82.0
79.3
62.3
79.1
82.9
79.6
82.9
79.1
83.1
78.2
83.3
78.5
79.51
80.8]
72-3]
67. 11
80.91
79.31
77.01
80.7|
82.3!
75.3]
78.4|
84.4J
33.6|
78.9
78.6
78.5
81.7
69.0
62.7
79-1
81-3
76.7
74- 1
82.6
80.5
82.9
83.3
83.3
78.0
61.4
70.8
04.9
60.2
80.6
74-6
7 3.9
62.Z
19.2
64.2
83-5
63.2
7b.O
80.6
71.s
66. 1
80.2
80. 5
75.2
71.9
33.6
6Z.2
85.0
63.4
63.2
78.7
81.2
74.3
69.0
61.1
80.9
75.8
71.7
86.3
8^-0
86.2
8J-5
83.4
77.9
81.3
72.8
67.2
81.7
80.6
74.5
71.0
84.8
79.6
86.6
81.5
83.7
77.3
77.7
73.7
69.9
79.8
81.6
76-0
7o.4
83.8
83-6
82.2
83.4
8^.2
78-9
80.6
73.4
68-8
80.7
82.0
76.9
74.2
83-2
82.8
82.4
82.8
63.2
80-4
75.6
72-1
81.0
81.0
72.8
70.9
80.o
74.0
86.9
80.7
83-9
83.6)
79.81
79.5J
92.8]
77.8]
83. 1|
89.41
89.01
Q2.9
73.8
31- 1
91.5
78.7
82.4
86.5
87.6
83.0
30.0
30.6
90.1
78.0
85.1
86. b
87.4
83-0
80. 1
81.5
89.2
78. :>
85.4
85.9
87-o
33.4
t)0.2
U4.2
91.2
16.2
85.3
86.3
37.7
83.3
60-d.
84-7
92-4
78-0
66.7
36.0
610.6
83-7
80.2
86. 5
91.2
78.9
86.3
8 7-0
87.3
83.6
80.1
86-7
91-8
79-6
84-7
8 7.0
87.3
83.6
79^4
86-1
91.2
79.4
87.3
86.7
67.2
81.7J
1
84.3]
63.81
82.8
82.1
82.2
82. 7
81-2
80-9
80.4
79.1
78.7
85.0
83.4
84.6
84-5
82.9
84.1
8^- b
81.9
31.0
81-5
80.2
83.4
82-6
83.4
62.3
83.6
82.5
I
70.71
77.81
69.11
76.21
83.4|
81.7|
74.41
76.5{
70.6|
80.81
67-6J
69.71
71-21
78.9]
7o.91
63.51
32.51
84.5]
88.2|
78.7]
87.9j
84.5]
36.01
1
83.01
78.0]
73.21
83.11
89-0|
77.0
81. 1
72.6
70.9
83. 1
75.0
88.4
61.2
83.5
a
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
88.61
85.81
92.1j
95.6J
88.61
99.6]
97.5j
86.41
1
92.81
71.8]
77.61
58.91
67.7]
69.2]
83.7]
59.5j
72.3]
1
87.8J
95.6 1 b 2 . 9 |
98-7 I 83-01
i
i
37.Oj
85.11
83.3]
92.71
82.91
91.7J
8^. 4j
92.41
J
95. 2 J
88.5]
67.6|
i
82.9
8J.5
87.8
87.1
Table 2
Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted
Series
1934
Q3
Total Industry
Manufacturing
Primary processing
Advanced processing
Durable manufacturing
Stone, clay and giass products
Primary metals
Iron and steel, subtotal
Nonferrous metals, subtotal
Fabricated metai products
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Automobiies
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
123.4
OUTPUT
I
1985
1
y1
Q3
1
Q2
1
1
123-11123.8 124.2 124.81
Q4
1
CAPACITY
i
1985
1
Q1
Q2
U3
i
1
1
150.6 1b 1.71152.8 154.0 155.1J
1984
1
Utilities
Electric utilities
1985
Q2
U3
81.9
I
tt1-^l 81.0
80-7
80.5
1
153.9 155-2]156.5 157. 7 153-91
61.b
81.0! 80.5
80.3
80.3
107. o 107.0J107.5 108-1 109. t>|
136.3 137-01137-1 137.9 138.71
131.2 131.4|131.6 132.0 13^-4j
16 7.6 169.61 171.4 173.2 174.9]
1
82.0
81.3
61.51 81.6
80.8] 80.0
1
81-9
79.6
82.7
79.3
158.8 160.3J161.7 163.1 164.5J
139-9 140.6] 141.4 142.3 S43.^J
113.1 111.91111.1 110. a 110.41
80.0
di.u
73.0
67.2
82.6
78.4
78.6
81.0
79.41 79.0
80-31 78.8
71.71 73.1
82.JL
81-71
75.31
67.6
81.9
80.8
75.9
77.2
84.9
84.4
61.1
83.6
82.4
78.5
81.2
71.0
65.5
80.0
81.3
76. J
74-1
Ql.i
80.8
83-2
83-2
83.3
78.2
81.0
72-9
67-4
81.5
80.7
75.2
71.5
84.9
81.2
85.9
82.8
83.5
125.6
i
127.1
113.4
82-5
72.4
101.7
104.2
146.8
17b. 1
106.1
1
i
126.8
139.8
121.1
127.3J127.7
112.9|111.b
80.21 81.2
70-4| 70.9
96.81100.7
105.41 107.5
145-61 145.5
179.21174.1
106.7j112.3
101.9|115.9
127.&J131.8
138.7j13».8
121.21120.5
127.9
115.&
78.7
68-3
98.3
108-3
147.9
169.2
110.6
112.5
135.4
13S.7
M2.1
128.6|
lib.0]
80.4{
70. 0J
100.21
107.51
148-01
1bS.6|
115-Oj
114.6J
140.01
140-6J
124.0]
107.7
123-1
132.8
186.3
217-2
129.1
133.2
162.4
162.6
144. U
106.01104.8
123-01 123.0
132.9J133-1
189.3]191.8
22.1.71225.5
130.71132.3
135.31 137.3
162.51162.6
164.3)166.0
145-11146.2
104.3
122.9
133.^
194.3
228,5
133-9
139.2
162*8
167.9
147-4
1U3-8|
122-9]
133.3J
19b.9j
231.5!
135-4J
141.01
162.9]
1by.8J
148.5J
123.4
127.9
103.3
128.4
123.0
86.8
144.9
126-0
123.51123.6
128.91126«7
97.4J 97.2
128.Oj127.2
123.7j1<<6.0
3 5 . * } 34.3
146-4|145.3
126.5J126.3
124.9
131.3
100-8
1^5.4
126.3
87.2
144.9
127.6
126.4|
132.5J
105.71
128.41
128-0J
87.5]
147-4J
128-11
147-1
159.8
122.U
136.9
158.8
104.6
162.2
141.7
150.2
164.0
122-7
139. 3
161.5
102.3
167.9
145.8
165.3J
122.9J
139.91
162.4J
1O1.6|
170.01
147.01
63.y
80.1
84.7
93.6
77,5
82.9
89,3
88.9
7 7*51
82.3|
89.3J
88.4J
82.9
79.2
79.4
91.9
78.5
81.8
87.6
87.4
83.1
80.1
82-1
90.2
78.2
85.2
86.3
37.6
83-6
60.2
86.0
91.8
78.8
86.0
86.7
87.1
113.8
108.3J110.1 110.0 108.21
132.9
148.1(149.2
1b1-2J162.6
122.21 122-4
137.6] 138.4
159.7] 160.6
103.8| 103.0
163.9J 165.8
143.11144-5
1
133.11133.4
133.O 133.91
65.6
81.31 8/!.6
82.3
80.8
132-6
141.0
133.01133.7 134.5 135.41
141.71142.8 144.2 145.51
32.8
82.5
83.5] 85.5
83.01 84.1
84.4
82.8
82.3
81.3
100.7
•
109.8 111.11114.2 113.6 111.4J
116.3 117.71320.1 119-3 118.3]
1^1.2j
75.7
78.1
86. U
84,0
66. 4 |
80.3]
79.3J
/ 6 . 91
8 0.31
78-7J
84.41
83.5]
83-41
80.0]
79.7]
93.01
•
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
UTILIZATION
1964
^3
1
12b. 6 127.7|
125.8J12U.U
1
1
Mining
U4
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
1973 I 1975 1 1978 | 1982 | 1967 \ 1984 |
Series
High | LOM J - 8 0 | Loir
| -84
| HO? I
I
I Hx 9 h I
I Ava. 1
I
1
I
I
I
1
70.5J 89.1| 6 8 . 4 1 82.71 81.51
Materials Industrial
92.0|
I
1
I
I
I
I
1
I
1
I
80.21
64.4|
Durable goods materials
91.81
89.8)
60.9| 79-51
I
1
1
I
1 78.91 68. 6 Ij
67. 1J 93.61
Metal materials
99.21
45.71
j
I
1
J
61.6|
36.11 81.9|
Raw steel
98.91
106.0| 66.4]
80.31
58.81 88.91
Aluminum
73.0)
97.41
95.7|
1
I
I
1
I
Nondurable goods materials
Textile, paper, and chemical materials
Pulp and paper materials
Chemical materials
Energy materials
I
I
91.1| 66.71
1
1
92.81 64.81
I
I
98.4| 70.6|
64.4|
92.51
1
I
1
I
86.9|
94.61
i
68.11
1
89.41
97.31
87.91
1
70.61
1
68.61
1
83.31
I
83.7J
I
79.91
91.31
63.31
80.91
I
I
1
1
82.21 89.91
i_
I
I
80.9|
I
81.11
I
92.51
78.81
J
1
84.8J
1985
_
MAI I APR I M Y I JUV I JtfL 1 A0S i SEP I OCI 1 HOY
A
81.4
80.9
80-3
80.1
79-5
79-9
79-4
78.9
79.1
78.9
78.3
76.6
76.5
75.8
76.6
75.4
75.0
75.3
69.8
69.9
66.2
69.0
66.4
69.4
67.3
69.4
70.7
68.2
74.2
68.4
73.6
67.9
72.9
67.4
72.0
67.2
71.0
67.4
70.5
67.6
70.3
67.4
68.5
80.2
80.2
80.8
81.0
81.7
82.1
82.8
82.3
82.3
81.4
80.7
80.9
81.4
82.7
82.8
83.6
82.9
83.0
92.1
79.5
89.1
79.2
88.8
79.5
90.5
79.2
91.7
80.1
90.1
79-8
90-7
81-2
88.5
81.1
88.4
87.6
87.5
87.3
85.8
85.1
85.2
84.5
64.7
Table 4
Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted
Series
1984
U3
Q4
OUTPUT
1985
Q2
U1
Materials Industrial
116.0
1 1 4 . 5 | 1 1 5 . 4 114.5
i
Durable goods materials
124.0
123.71123.6 121.4
Metal materials
Raw steel
Aluminum
Nondurable goods materials
Textile, paper and chemical materials
Pulp and paper materials
Chemical materials
Energy materials
i
82.0
80.4J 80.6
80.2
64.11 7J.4 71.2
95.91 90.9 86.4
1
1
111.6 110.91 110.9 111.2
70.7
99.1
i
112.^
110.71111.6 m.a
j
127.7 126.2J12O.3 121.8
110.2 110.9J 1S3.2 112.6
1
1
105.7 101.31105.0 105.2
1
1
1 1984
1 S3
1
114.11 139.8
1
1
120.71 153. 1
1
79.4| 118. 8
1
70.71 107. 6
63.51 119. 3
1
1
113.oj 136. 3
I
114. 11 135. 7
|
123.81 133.7
114.61 140.8
1
1
103.0] 119. 3
<
Q3
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. 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.
1985
Q1
I
140.71141.6
1
»
154.41155.9
1
117.81117.3
1
105.81104.9
119.0|118.8
1
1
136.8| 137.3
U4
142.5 143.4|
1
1
157.4 158.91
1
117.3 117.31
83. 0
81. 0
UTILIZATION
1985
G1
Q2
1
80.4
81.5
81.41
1
1
8 0 . 1 1 79, 3 7 7 . 1
69. 0
68.2|
68.7
68.4
67.7
104.9 104.81
118.6 118.3J
65. i
83. 0
6 0 . 6 | 67. 1
8 0 . 6 1 76. 5
1
1
81.01 80. 7
67.9
72.9
67.4
70.6
80.7
82.2
81.31 8 1 . 7
I
9 3 . 3 1 92. 8
7 8 . 6 ] 80. 0
1
81.0
83.0
89.4
79.3
90 8
80.4
84.61 87. 5
87.5
85.4
1
Q2
137.8
Q*
I
J
1984
V3
2
1
61.9
i
136.21136.7 137.0 137.4| 8 2 - 7
1
135.31 136.1 136.2 136.31 9 5 . 5
141. 11141.5 142.0 142.6j 7 8 . 3
J
1
I
119.7(120.0 120.3 1 2 0 . 6 | 8 6 . to
1
U4
Q3
79.6
76.0
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. Fof mining, manufacturing, and utilities as a whole, and for total
manufacturing, utilization rates as high as 90 percent have been exceeded only in wartime.
«. 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 "Revised Federal
Reserve Rates of Capacity Utilization", Federal Reserve Bulletin, October 1985. Revised data
from 1948-84 are included in the statistical supplement to the July 1985 capacity utilization
release, which 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 1986. Approximately 11 a.m. on January 17, February 18, March 17,
April 16, May 16, June 16. July 16, August 18, September 17, October 17, November 17, and
December 17.
