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FEDERAL RESERVE statistical release G.3 (402) For immediate release December 17, 1979 CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS November 1979 Manufacturers operated at 84.4 percent of capacity in November, down 0.6 of a percentage point from the preceding month and 1.9 percentage points from a year earlier. Producers of industrial materials operated at 85.9 percent of capacity in November, down 0.8 of a percentage point from October and 2.2 percentage points from a year earlier. The 1973 peak utilization rates were 88.0 percent of capacity for manufacturing and 92,6 percent for industrial materials. Within manufacturing, the utilization rates in the primary and advanced processing industries declined 0.6 and 0.7 of a percentage point, respectively, in November. Both are now more than 2 percentage points below their rates in the first quarter. A substantial part of this decline has been associated with a drop of nearly a fourth in production of motor vehicles and parts. The decline in utilization rates for industrial materials in November mainly reflected a 1.2 percentage point drop in the operating rate for durable goods materials—a sector which has been declining for some months. The utilization rate for the metal materials component has declined by about 10 percentage points since late 1978. The utilization rate for nondurable goods materials edged down in November. The operating rates for textile, chemical, and paper materials have held at relatively high levels throughout 1979. Utilization rates for energy materials also edged down in November, reflecting a small decline in coal output. 1967 INDUSTRIAL MATERIALS MANUFACTURING 1970 1973 1976 1979 1970 1973 1976 1979 OUTPUT, CAPACITY AND CAPACITY UTILIZATION Output and Capacity are Percentages of 1967 Output; Capacity Utilization is a Par Cent of Capacity. Seasonally Manufacturing MONTHLY CAPACITY UTILIZATION SERIES MANUFACTURING, TOTAL PRIMARY PROCESSING ADVANCED PROCESSING 19731 86.01 1 1 93.81 1 85.51 1 1 1975 1 1978 1 69.0 86.3 68.2 89.5 69.4 84.5 1 86.81 1 1 90.11 1 85.01 1 1979 iijr 1979 I MANUFACTURING) TOTAL IV ii 151.71 153.4 PRIMARY PROCESSING 158.2 162.21 162.1 ADVANCED PROCESSING 143.6 146.11 148.7 AUG. S.IEP i OCjT. NOV. 86.2 86.1 84.9 85.3 85.0 84.4 86.7 87.1 85.3 89.0 88.6 88.6 87.8 88.0 87.9 88.9 87.7 87.3 87.2 86.6 83.8 85.5 85.2 64.6 83.3 84.1 83.8 83.1 85.0 85.5 1 1 nil I 1 148.6 JLfLV 86.4 OUTPUT 1978 86.3 JUNE 86.2 CAPACITY 1978 in 1979 iy i 1 175.61 176.9 153.1 153.31 i74.5 161.9 163.41 179.9 1 1 148.5 148.01 171.6 172.71 173.8 1 1 1 1 I II I 1 1 JII 1 178.2 179.5! 184.2 185.71 175.0 176.21 UT1LIZ AT ION 1976 III 85.2 1 1 I 1 181.2! 182.7 1979 I IV 1 86.4) 1 II III 86.7 85.9 85.4 89.51 1 84.61 88.7 87.9 88.0 63.7 65.6 84.8 84.0 87.9 1 1 MONTHLY CAPACITY UTILIZATION SERIES MATERIALS, TOTAL 1973! HIGHl 1975 92.61 69.4 1978 LOW METAL MATERIALS NONDURABLE GOODS MATERIALS TEX., PAPER, £ CHEM. MAT. TEXTILE MATERIALS PAPER MATERIALS CHEMICAL MATERIALS ENERGY MATERIALS 91.5! JANr FEB. MAR. APR. MAY JUNE JULY AUfi. SEP. ftCTtf NOV. 88.1 88.81 | 1 88.41 87.9 87.8 88.3 86.9 87.4 87.5 87.9 86.8 86.7 86.7 85.9 83.5 63.6 87.2 68.6 94.4 1 1 94.51 1 95.1! 1 67.2 89.5 65.3 89.5 92.6! 57^9 99.4| 95.51 » 1 94.6! 72.4 64.2 87.0 93.3 89.3 84.8 88.8 96.0( 1 1 90.11 1 90.21 1 87.81 93.9| 89.9| » 1 88.2J 1978 MATERIALS, TOTAL 150.2 1979 I II 154.61 155.5 155.6 IV 1 1 DURABLE GOODS MATERIALS METAL MATERIALS 151.9 87.0 87.5 85.4 86.3 86.9 87.3 85.4 85.1 84.7 66.2 90.6 88.2 87.0 90.3 92.4 89.7 88.6 86.0 89.4 89.8 90.0 69.6 89.7 89.2 89.5 89.6 90.0 90.4 90.1 89.2 90.0 89.9 89.9 90,1 89.8 90.0 90.4 91.0 91.6 91.3 86.4 89.9 89.7 85.8 92.4 90.5 86.8 93.8 89.8 85.3 94.3 90.1 86.5 93.4 90.1 69.4 93.9 89.0 88.8 97.0 88.7 87.5 97.2 89.7 90.1 97.8 89.6 90.4 97.0 90.5 86.7 87.6 87.2 86.6 86.8 87.1 86.1 86.5 86.6 87.3 | OUTPUT III 87.3 88.6 ! I 98.2! 1979 DEC.I I | DURABLE GOODS MATERIALS ' » NDWT ! 157.31 158.4 157.7 1 ! IIII CAPACITY 1978 III i 1979 I IV 1 175.4! 176.8 1 1 1 180.1! 181.5 1 124.3 127.01 139.3 139.6! 139.8 126.6 132.2! 124.7 NONDURABLE GOODS MATERIALS 165.9 170.3) 172.2 173.4 175.71 188.5 TEX., PAPER, 1 CHEM. MAT. 1 I 172.2 177.11 179.1 181.3 184.31 196.2 197.91 199.6 116.0 134.1 212.3 119.51 118.2 138.11 136.9 218.01 222.7 119.6 140.7 224.8 122.31 136.3 147.0! 146.9 226.6( 242.2 136.6! 136.9 147.81 148.7 244.6! 247.4 1 1 1 1 128.41 144.7 145.71 146.7 1 1 1 1 i 1 1 TEXTILE MATERIALS PAPER MATERIALS CHEMICAL MATERIALS 1 1 1 ENERGY MATERIALS NOTE: 126.9 128.91 127.9 I — 128.1 1976 III 178.1 179.61 183.0 88.2! 85.1 87.4! 140.8! 193.7 195.71 201.5 203.81 137.3 149.9 250.6 137.71 151.01 253.8! 65.1 91.3 87.6 147.5 148.3! 87.7 90.9 1 I 88.0 ! 87.8 1 | 1 I II1 | 87.1 86.0 87.3 87.3 86.2 86.0 89.1 88.5 90.2 69.7 89.5 89,8 89.7 89.9 90.5 86. 3 92.0 90.0 87.1 93.9 89.7 88.8 97.3 89.3 87.2 86.9 86.6 1 140.3 1 II 1 86.4 1 « 1 190.21 191.9 184.61 1979 I XV 1 1 ! I IJII 86.4 UTILIZATION 1 156.7! 173.9 158.71 178.5 II i » 1 94.71 ! 1 89.6! I 89. 5 j 1 •7.5! 93.41 69.1! 1 1 68.51 i E S T I M A T E S OF ACTUAL OUTPUT AND CAPACITY OUTPUT ARE BOTH EXPRESSED AS PERCENTAGES OF 196? ACTUAL OUTPUT. ESTIMATES OF C A P A C I T Y U T I L I Z A T I O N IN PERCENT ARE CALCULATED AS RATIOS OF (1) THE FEDERAL RESERVE'S SEASONALLY ADJUSTED INDEXES OF INDUST R I A L PRODUCTION TO (2) THE CORRESPONDING INDEXES OF CAPACITY. INDUSTRIAL MATERIALS ARE ITEMS BOTH PftOOUCED AMD USED AS INPUTS BY MANUFACTURING PLANTS, M I N E S AND U T I L I T I E S ; INDUSTRIAL MATERIALS COVER MANY OF THE ITEMS REPRESENTED IN THE PRIMARY PROCESSING GROUPING OF M A N U F A C T U R I N G AS WELL AS SOME OF THE OUTPUT OF M I N E S AND UTILITIES — SUCH AS IRON ORE, CRUDE OIL, AND E L E C T R I C I T Y SOLO TO INDUSTRY. THE 1973 HIGHS AND 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 D I F F E R E N T MONTHS. INDUSTRIAL P L A N T S USUALLY O P E R A T E AT C A P A C I T Y UTILIZATION RATES THAT ARE WELL BELOW 100 PERCENT} NONE OF THE BROAD A G G R E G A T E S E R I E S HAS E V E R INDICATED A 100 PERCENT USE OF CAPACITY. CAPACITY UTILIZATION RATES AVERAGED ABOUT 83 PERCENT FOR M A N U F A C T U R I N G FROM 1955 THROUGH 1978, AND ABOUT 85 PERCENT FOR INDUSTRIAL MATERIALS FOR 1967 THROUGH 1976. IN M A N U F A C T U R I N G AS A WHOLE, UTILIZATION RATES AS HIGH AS 90 PERCENT HAVE BEEN EXCEEDED ONLY IN WARTIME. THE PEAK RATES OF UTIL I Z A T I O N IN 1973 WERE ASSOCIATED WITH SIGNIFICANT U P W A R D PRESSURE ON PRICES. THE* METHODOLOGY AND THE SERIES ARE DESCRIBED IN FEDERAL RESERVE MEASURES Qfc EfFACfTY £g t;iTY uriiiiATifm. REVISED DATA ARE FOUND IN "CAPACITY U T I L I Z A T I O N : M A N U F A C T U R I N G AND M A T E R I A L S , JANUARY 1967—DECEMBER 1976 .« BOTH PUBLICATI ATIONS MAY BE OBT A I N E O FROM PUBLICATIONS SERVICES, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. 20551
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