View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL

RESERVE

statistical

release

For irnmediate release
December 17, 1976

G.3 (Formerly E.5)

Capacity utilization in manufacturing increased to an
estimated 80.7 per cent in November from 79.7 per cent in October.
More than half of the November increase can be traced to the
settlement of strikes and the attendant restoration of production
levels in the effected industries. Most of the increase in the
November capacity utilization rates was in the advanced processing
industries, where the post-strike effects were concentrated, but
small increases in utilization were fairly widespread throughout
manufacturing industries that were little affected by strikes.
Capacity utilization in materials rose to about 81 per cent
in November, up from 80.4 per cent in October. The resurgence was
most pronounced in durable goods materials; nondurable goods materials
and energy materials capacity utilization are estimated to have risen
slightly.
Capacity utilization rates both in manufacturing and in
materials have not changed appreciably during the second half of 1976
and are below their averages in the 1955 to 1975 and 1967 to 1975
periods, respectively.
Descriptions of these series and tables of historical data
appear in the November Federal Reserve BULLETIN.

MANUFACTURING

INDUSTRIAL MATERIALS

PER CENT
105

ENERGY
TOTAL

85

I

65
100
NONDURABLE GOODS
PRIMARY PROCESSING

80
ADVANCED PROCESSING

DURABLE GOODS

60
1965




1968

1971

1974

1977

I
1968

I

I

I
1971

I

I

I

1

1974

1977

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

Manufacturing
SERIES

1973)
HlfiHl
J
88.0)
1
)
93.6)
1
65.4)

MANUFACTURING, TOTAL
PRIMARY PROCESSING
ADVANCED PROCESSING

MANUFACTURING, TOTAL

119.4

PRIMARY PROCESSING

124.3

ADVANCED PROCESSING

1975
NOV.

DEC.

69.6

76.9

77.4

78.2

67.8

78.5
76.1

78.1)
1
77.0)

78.6

70.5

77.3

OUTPUT
1976
IV
1
1
122.5) 126.7
1
)
128.9) 133.4
I
119.1) 122.9

1975
II
I

116.8

MONTHLY CAPACITY UTILIZATION
1976
JAN.
FEB.
MAR. APR.

1975
LOU

125.2

JULY

AUG.

SEP.

OCT.

NOV.

80.9

81.1

80.4

79.7

80.7

81.2

81.4

82.1

82.1

82.4

83.0

81.6

6^.0

78.8

79.6

79.3

79.7

80.1

78. v

76.6

79.9

61.0
78.7

1975
III

131.1) 158.6
«
1
139.3) 163.9
1
126.3) 155.7
1

136.6

MNE

80.5

80.6

1

129.4

J

80.3

79.8

78.6

nil
1

I
I

MAY

79.6

79.2

CAPACITY
1976
IV
I
)
159.5) 160.4
1
)
165.0) 166.2
1
156.41 157.2
1

ii

nif
1

161.3

162.31
1
1
168.8)
1
158.8)

75.3

75.0

UTILIZATION
1976
IV
I
1
76.8)
79.0
1
1
60.2
78.1)
1
76.2
76.1)

167.5
158.0

1
1

1975

ifi

75.8

I
I
60.2

II
I

80.6

81.5

82.5

79.2

?*.*

80.4

81.0
77.9

Industrial Materials
MONTHLY CAPACITY UTILIZATION

19731

1975 | 1975

HIGH I
1

SERIES

LOU I NOV.

93.1)

DURABLE GOODS MATERIALS
BASIC METAL MATERIALS

69.7

77.*

1
1
92.5)
64.3
|
97.7)
66.1

MATERIALS, TOTAL

70.2

r
i

NONDURABLE GOODS MATERIALS
TEX., PAPER, & CHEM. MAT.
TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS
ENERGY MATERIALS

94.6)
1
94.5)
|
94.4)
100.5)
93.6)
1
)
94.6)

70.6

67.8

84.2

65.5

83.7

58.0
71.6
64.7

86.3
66.7
82.1

82.7

86.1

I 1976
DFC.t
JAN.
|
78.2
77.2)
J
1
70.71 72.1
1
71.7
67.7)
1
)
84.6
84.7)
1
83.8
84.3)
1
85.4
86.4)
87.7
87.5)
82.9)
82.2
1
1
85.1)
86.2
|
1

OUTPUT
1975

MATERIALS, TOTAL

118.2

-

DURABLE GOODS MATERIALS
.
BASIC METAL MATERIALS
•

111.6

NONDURABLE GOODS MATERIALS

132.5

TEX., PAPER, C CHEM. MAT.

135.3

TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS
ENERGY MATERIALS

NOTE:

98.7

110.7
115.7
153.9

116.4

1976

1
122.8)
j
j
115.1)
1
98.4)
1
)
141.4)
1
146.3)
1
118.2)
124.0)
167.7)
1

118.5)
J

126.9

130.3

120.8

126.1

103.7

110.8

145.0

'
146.9

150.2

151.6

116.5
128.9
173.6

115.5
132.5
175.3

119.7

120.0

1
132.51
j
j
130.7)
j
117.1)
1
1
146.7)
1
151.3)
1
114.8)
131.9)
175.1)
1
1
119.7)
1

FEB.

MAR.

APR.

MAY

79.3

79.7

BO.l

80.8

80.8

81.2

61.6

81.0

74.0

74.3

75.4

76.6

76.5

78.5

78.9

77.8

77.1

73.8

72.9

75.5

79.1

77.7

81.9

83.5

79.2

77.4

85.9

86.3

86.2

85.5

66.0

84.9

64.7

85.5

65.0

65.3

85.3

86.1

85.6

84.6

64.6

83.8

83.6

84.5

84.2

84.2

84.0
89.9
84.3

63.4
89.8
86.0

82.2
9O.9
85.2

83.7
90.1
83.3

83.3
91.9
83.4

82.2
90.2
82.6

82.2
90.4
82.1

81.9
69.1
8*.0

82.0
89.0
83.6

84.6

85.0

84.2

85.2

64.9

83.9

84. <»

83.2

82.8

83.2

1975

UTILIZATION
1976
80.6

81.3

1975

157.7
161.6
140.9
166.1
172.9
135.9
142.5
201.3
138.0

CAPACITY
1976
1
159.2)
1
1
163.1)
1
141.7)
1
1
167.8)
1
174.7)
j
137.2)
143.5)
203.7)
1
1
139.1)
1

1
1

160.6

161.7

164.4

165.5

142.4

143.1

169.4

171.0

176.5

178.3

138.2
144.6
206.2

139.0
145.7
2O8.7

140.3

141.5

1
163.1)
1
|
166.7)
j
143.7)
1
1
172.5)
|
180.1)
1
139.8)
146.7)
211.2)
1
1
142.7)
J

74.9
69.0
70.1
79.8
76.2
81.5
81.2
76.5

84.4

1
77.11
79.0
1
1
70. 6 | 73.5
|
69. 4|
72.8
1
1
64.3)
85.6
1
63.8)
65.1
1
66.2)
64.3
66.4|
69.1
62.3)
84.2
1
1
85.2)
85.3
1

76.2

76.4

77.*

61.5

85.9

85.0

8*. 0

84.0

83.1
90.9
84.0

82.1
69.9
82.9

64.8

63.9

ESTIMATES OF ACTUAL OUTPUT AND CAPACITY OUTPUT ARE BOTH EXPRESSED AS PERCENTAGES OF 1967 ACTUAL OUTPUT. ESTIMATES OF
CAPACITY UTILIZATION IN PER CENT ARE CALCULATED AS RATIOS OF 11) THE INDEXES OF INDUSTRIAL PRODUCTION TO (2) THE CORRE-r
SPONDING INDEXES OF CAPACITY. INDUSTRIAL MATERIALS ARE THOSE CRUDE AND SEMIFINISHED PRODUCTS THAT ARE BOTH PRODUCED AND USED
AS INPUTS BY INDUSTRIAL ESTABLISHMENTS; THE INDUSTRIAL MATERIALS INCLUDE MOST OF THE COMPONENTS OF THE PRIMARY PROCESSING
GROUPING OF MANUFACTURING AS WELL AS THE INPUTS SUPPLIED TO THE INDUSTRIAL SECTOR BY MINES AND UTILITIES—SUCH AS IRON ORE,
CRUDE OIL, AND INDUSTRIAL ELECTRICITY. THE 1973 HIGHS (AND ALSO 1975 LOWS) IN C A P A C I T Y UTILIZATION, SHOWN IN THE TABLES
ABOVE, ARE SPECIFIC TO EACH SERIES AND MAY OCCUR IN DIFFERENT MONTHS.
BUSINESSES USUALLY OPERATE AT CAPACITY UTILIZATION R A T E S THAT ARE WELL BELOW 1OO PER CENT; NONE OF THE BROAD AGGREGATE SERIES
HAS EVER INDICATED A 100 PER CENT USE OF CAPACITY. CAPACITY UTILIZATION RATES AVERAGED ABOUT 83 PER CENT FOR MANUFACTURING
FROM 195S THROUGH 1975, AND ABOUT 86 PER CENT FOR INDUSTRIAL MATERIALS FOR 1967 THROUGH 1975. IN MANUFACTURING AS A WHOLE,
UTILIZATION RATES AS HIGH AS 90 PER CENT HAVE BEEN EXCEEDED ONLY IN WARTIME. THE PEAK RATES OF UTILIZATION IN 1973 WERE
ASSOCIATED WITH SIGNIFICANT UPWARD PRESSURES ON PRICES.
THE CAPACITY UTILIZATION ESTIMATES ARE DESCRIBED, AND HISTORICAL DATA ARE PROVIDED, IN THE NOVEMBER 1976 ISSUE OF THE FEDERAL
RESERVE BULLETIN. THE PRODUCTION FIGURES ARE DESCRIBED IN THE JUNE 1976 ISSUE OF THE BULLETIN! CURRENT ESTIMATES ARE
PUBLISHED IN THE FEDERAL RESERVE STATISTICAL RELEASE, INDUSTRIAL PRODUCTION. G.12.3.