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FEDERAL RESERVE statistical release
For release at 9:15 a.m. (EST)
February 16,1990

G.3 (402)

CAPACITY UTILIZATION
Manufacturing, Mining, Utilities, and Industrial Materials
Capacity utilization in manufacturing, mining, and utilities fell 1.2 percentage points in January to
81.9 percent. Operating rates for auto and truck assembly facilities dropped to levels near their 1982 recession
lows as vehicle makers extended their holiday shutdowns to reduce excess inventories. Electric utilities also
contributed significantly to the overall decline. Utilization at power plants fell about 10 percentage points as
unseasonably warm temperatures in January displaced especially cold weather during December. In contrast to
the declines for manufacturing and utilities, the operating rate for mining, led by a resurgence at coal mines after
a relatively weak December, rose nearly 2 percentage points to 84.7 percent.
The steep decline for auto and truck assemblies, along with little overall change for other
components, brought the operating rate for manufacturing down 1 percentage point to 81.9 percent. Utilization
for the nonelectrical machinery and fabricated metals industries also contributed to the slowdown in January,
decreasing about 1 percentage point each. The decline in nonelectrical machinery reflected some slowing of
computer production while reduced output of metal stampings for the motor vehicle industry lowered the
operating rate for fabricated metals. Despite these reductions in production for autos and related goods,
utilization for primary metals manufacturers turned back up in January following several months of decline.
Even so, the rate for primary metals in January, at about 80 percent, was 5 percentage points below the levels it
maintained during the summer.
The utilization rate for total manufacturing declined over the past year by nearly 3 percentage
points with much of the slowing occurring during the past few months. Decreases in operating rates for primary
processing industries, especially primary metals, made up the bulk of the overall drop; the rate for advanced
processing industries actually increased during the first half of 1989 before weakening motor vehicle production
reduced it during the second half.
The operating rate for producers of industrial materials fell 0.8 percentage point in January with
declines widespread. The drop in electric power generation resulted in an especially large decline for energy
materials. Utilization for total industrial materials has fallen about 3 percentage points since the start of 1989
with significant declines in metal, paper, and chemical materials.
Capacity Utilization: Summary
Percent of capacity, seasonally adjusted

Series
Total industry

1973
High

1975
Low

1978
-80
High

1982
Low

1967
-89
Ave.

1989
Oct

Nov

Dec

1990
Jan

88.6

72.1

86.9

69.5

81.7

83.1

83.1

83.1

81.9

Manufacturing
Durable manufacturing
Nondurable manufacturing

87.7
87.4
88.8

69.9
67.9
71.8

86.5
86.3
87.0

68.0
63.7
74.2

80.9
79.0
83.8

83.1
80.8
86.3

83.1
80.9
86.2

82.9
80.9
85.7

81.9
79.4
85.6

Mining
Utilities

92.8
95.6

87.8
82.9

95.2
88.5

76.9
78.0

86.3
86.5

84.2
81.4

84.4
81.3

82.8
86.4

84.7
77.1

Materials

92.0

70.5

89.1

68.5

82.4

83.5

83.2

82.5

81.7




CAPACITY UTILIZATION
JANUARY DATA
SEASONALLY ADJUSTED, PERCENT
110

110
TOTAL INDUSTRY
TOTAL MATERIALS

90

-

70

-

50

-

90

70

I
1976

! !
1978

1
1
1980

1
1
1982

1
1
1984

1
1
1986

I
I
1988

1
1
1990 1976

1 1
1978

1
1
1980

1
1
1982

1
1
1984

1 1
1986

1
1
1988

I
1990

110

50
110

MINING
*

UTILITIES

90

70 -

vr-AAv'V/NA./A/Vyv^

*jk

.

.

I

-

90

-

70

MANUFACTURING
50

1
1976

1
1
1978

1
1
1980

1
1
1982

1
1
1984

1
1
1986

1
1
1988

1
1990 1976

1978

1980

1982

1984

1986

1988

I

I

I

I

I

I

1990

50
110

110

I

MANUFACTURING

I

I

I

I

I

I

ELECTRICAL MACHINERY

NONDURABLE

90 -

I

70 DURABLE

\/

\

-

90

-

70

1
1990

50

/

NONELECTRICAL MACHINERY
50

1
1976

1
1
1978

1
1
1980

1
1
1982

1
1
1984

1
1
1986

1
1
1988

1
1
1990 1976

1
1
1978

1
!
1980

1
1
1982

1
1
1984

1
1
1986

1
1
1988

110

110
ALUMINUM

TEXTILE, PAPER, AND
CHEMICAL MATERIALS

^v ^

%

90 -

-

90

70 -

-

70

-

50

1
1990

30

RAW STEEL

50 -

30

1
1976

1
1
1978




1
1
1980

1
1
1982

1
1
1984

1
1
1986

1
1
1988

1
1
1990 1976

1
1
1978

1
1
1980

\

1
1
1982

/

1
1
1984

1
1
1986

1
1
1988

MANUFACTURING, MINING AND UTILITIES
Table 1

Capacity Utilization
Monthly, seasonally adjusted. percei ntofcaj oacity
1973 1975 1978
-80
Series
Low
High
High

1982
Low

1967
-89
Ave.

1989
Jan

1989
May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

1990
Jan

88.6

72.1

86.9

69.5

81.7

84.3

84.0

84.0

83.7

83.9

83.6

83.1

83.1

83.1

81.9

87.7

69.9

86.5

68.0

80.9

84.7

84.3

84.4

84.0

84.2

83.7

83.1

83.1

82.9

81.9

91.9
86.0

68.3
71.1

89.1
85.1

65.0
69.5

82.2
80.3

88.4
83.1

86.2
83.4

86.2
83.5

86.7
82.9

86.6
83.2

85.8
82.6

86.2
81.6

85.6
81.9

84.9
82.1

84.9
80.7

87.4
89.3
101.9
105.8
95.6
85.0
89.0
85.7
97.1

67.9
67.1
67.0
66.6
62.1
64.7
68.2
63.7
52.7

78.4
82.9
81.6

83.2
84.5
90.6
91.6
89.3
84.3
83.9
77.3
86.6
75.7
85.7
33.4
81.7

82.9
82.3
84.1
80.8
88.6
83.7
86.6
77.1
82.5
73.1
87.3
83.7
81.2

82.9
82.2
84.0
80.2
89.1
83.7
86.8
77.1
80.1
69.6
87.8
84.1
81.9

82.4
81.5
85.6
82.8
89.4
83.7
86.2
76.7
75.9
61.8
88.3
83.9
81.7

82.8
82.0
86.5
83.2
91.0
83.5
86.5
77.6
78.4
65.8
87.8
82.7
81.5

82.2
81.6
85.3
82.4
89.1
82.6
86.4
77.1
77.2
70.7
87.0
81.8
81.4

80.8
81.6
85.0
83.3
87.1
82.2
84.3
76.7
75.4
69.8
78.4
81.2
81.7

80.9
82.0
81.1
78.4
84.7
82.9
85.6
76.2
75.5
64.3
79.6
80.6
82.0

80.9
81.4
78.9
76.2
82.5
82.2
85.7
75.9
75.6
64.3
83.6
79.8
82.1

79.4

69.6
74.9
69.0

63.7
62.9
45.8
37.6
60.8
61.3
62.9
66.9
47.0
36.6
70.7
77.8
69.1

79.0
78.6
80.2
79.1
81.8
78.2
78.5
78.0
78.3

77.0
89.2
87.7

86.3
86.6
97.1
100.3
91.1
87.4
86.0
89.9
93.3
93.3
87.1
88.9
81.0

88.8
85.8
92.1
95.6
88.6
99.6
97.5
86.4

71.8
77.6
58.9
67.7
69.2
83.7
59.5
72.3

87.0
85.1
88.3
92.7
82.9
91.7
89.4
92.4

74.2
76.5
70.6
80.2
67.6
68.8
71.2
78.9

83.8
82.1
85.5
89.0
79.6
86.9
85.0
86.0

86.8
81.2
90.7
95.1
89.3
87.5
86.0
86.5

86.2
80.7
92.8
91.6
87.3
86.3
86.6
86.9

86.4
80.9
92.8
91.3
87.9
87.2
87.0
87.0

86.3
80.4
92.5
92.4
88.8
87.4
86.6
86.1

86.2
80.7
92.1
92.3
88.0
86.9
86.8
85.9

85.9
80.8
92.0
92.4
86.5
87.4
86.7
86.2

86.3
81.4
92.1
93.4
87.2
87.1
87.1
86.2

86.2
81.9
90.5
91.9
87.2
87.1
86.3
86.1

85.7
81.7
91.0
91.9
86.6
84.7
85.4
85.8

Mining

92.8

87.8

95.2

76.9

86.3

82.2

81.8

81.5

82.1

82.4

83.4

84.2

84.4

82.8

84.7

Utilities
Electric utilities

95.6
98.7

82.9
83.0

88.5
87.6

78.0
78.2

86.5
87.8

80.9
83.4

81.8
85.8

80.8
84.9

80.5
85.0

80.0
84.4

80.8
85.1

81.4
85.7

81.3
85.5

86.4
90.6

77.1
80.8

1989
Ql

Qll

Qlll

QIV

1988
QIV

1989
Ql

Qll

Qlll

QIV

Total industry
Manufacturing
Primary processing
Advanced processing
Durable manufacturing
Stone, clay & glass prod.
Primary metals
Iron and steel
Nonferrous metals
Fabricated metal products
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Autos
Aerosp. & misc. transp. eq.
Instruments
Other durables
Nondurable manufacturing
Foods
Textile mill products
Paper and products
Chemicals and products
Petroleum products
Rubber & plastics prod.
Other nondurables

80.4
81.1
84.7
76.2
59.3
42.8
83.7
79.8
82.0
85.6

87.7
85.8

Table 2

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

Utilization

Capacity

1988
QIV

1989
Ql

Qll

Qlll

QIV

1988
QIV

139.9

140.7

141.8

142.2

142.2

166.3

167.5

168.7

169.9

171.1

84.1

84.0

84.1

83.7

83.1

145.8

147.0

148.3

148.8

148.4

172.8

174.3

175.7

177.2

178.7

84.4

84.4

84.4

84.0

83.0

Primary processing
Advanced processing

127.7
156.7

127.8
158.6

127.6
160.8

128.8
160.9

128.7
160.3

145.2
189.5

146.5
191.0

147.8
192.6

149.1
194.2

150.4
195.8

87.9
82.7

87.3
83.0

86.4
83.5

86.4
82.9

85.6
81.9

Durable manufacturing
Stone, clay & glass prod.
Primary metals
Iron and steel
Nonferrous metals
Fabricated metal products
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Autos
Aerosp. & misc. transp. eq.
Instruments
Other durables

145.2
124.4
92.3
80.5
114.5
124.1
175.7
182.0
123.4
116.9
152.3
159.8
139.9

146.0
125.8
90.9
79.1
113.2
124.3
180.8
181.4
122.9
110.6
153.7
161.4
138.5

147.1
124.2
88.2
74.4
114.4
124.4
186.2
181.9
119.3
108.9
157.1
164.3
141.3

147.3
123.4
89.5
75.6
115.9
125.1
187.6
182.6
112.4
99.0
158.8
164.4
142.7

145.4
123.8
85.7
72.9
109.9
124.7
186.6
181.4
110.4
98.9
146.9
161.7
144.5

175.0
149.4
102.6
89.6
127.1
146.9
211.9
233.5
143.8
150.2
177.5
191.8
171.2

176.1
150.0
103.1
90.0
127.7
148.0
213.5
234.5
144.4
150.2
178.6
193.9
172.5

177.4
150.5
103.7
90.6
128.4
149.1
215.4
235.6
145.0
150.0
179.9
196.2
173.8

178.6
151.1
104.3
91.3
129.0
150.2
217.2
236.7
145.7
149.8
181.1
198.5
175.1

179.8
151.6
105.0
91.9
129.7
151.3
219.1
237.8
146.3
149.6
182.4
200.8
176.4

82.9
83.2
90.0
89.8
90.1
84.5
82.9
78.0
85.8
77.8
85.8
83.3
81.7

82.9
83.9
88.2
87.9
88.6
83.9
84.7
77.3
85.1
73.6
86.0
83.2
80.3

83.0
82.5
85.1
82.0
89.1
83.4
86.5
77.2
82.3
72.6
87.3
83.7
81.3

82.5
81.7
85.8
82.8
89.9
83.3
86.3
77.1
77.2
66.1
87.7
82.8
81.5

80.9
81.7
81.6
79.3
84.8
82.4
85.2
76.3
75.5
66.1
80.6
80.5
81.9

Nondurable manufacturing
Foods
Textile mill products
Paper and products
Chemicals and products
Petroleum products
Rubber & plastics prod.
Other nondurables

146.7
145.2
117.4
151.4
157.4
96.4
177.3
148.3

148.4
146.1
119.8
152.4
158.9
97.1
175.8
152.3

149.9
147.2
123.3
150.3
159.1
97.4
180.3
155.3

151.0
148.1
123.3
152.9
161.0
98.1
183.4
155.3

152.5
151.2
122.4
154.4
161.7
97.3
185.1
157.3

169.8
179.6
131.8
160.7
176.7
111.9
202.6
173.3

171.6
181.0
132.7
162.3
178.8
112.1
205.5
175.7

173.5
182.4
133.2
163.9
181.1
112.3
208.5
178.1

175.3
183.7
133.7
165.5
183.5
112.5
211.5
180.4

177.2
185.1
134.2
167.1
185.8
112.7
214.5
182.8

86.4
80.8
89.1
94.2
89.1
86.2
87.5
85.6

86.5
80.7
90.2
93.9
88.9
86.6
85.5
86.7

86.4
80.7
92.5
91.7
87.9
86.7
86.5
87.2

86.1
80.6
92.2
92.4
87.8
87.2
86.7
86.1

86.1
81.7
91.2
92.4
87.0
86.3
86.3
86.0

Mining

104.2

101.8

102.0

102.7

103.8

125.7

125.1

124.7

124.3

123.8

82.9

81.3

81.8

82.6

83.8

Utilities
Electric utilities

114.3
132.4

116.0
134.4

115.7
135.8

113.9
134.9

117.9
139.5

140.7
156.7

141.0
157.4

141.4
158.2

141.7
159.0

142.0
159.8

81.3
84.5

82.3
85.4

81.8
85.9

80.4
84.8

83.0
87.3

Total industry
Manufacturing

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

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



INDUSTRIAL MATERIALS
Table 3

Capacity Utilization
MOnTniv. seasonauy aajusiea.perce HOT ca jaciiv
1973 1975 1978
Low
High
Series
High

1982
Low

1967
-89
Ave.

1989
Jan

1989
Mav

Jun

Jul

Aug

Sep

Oct

Nov

1990
Jan

92.0

70.5

89.1

68.5

82.4

84.6

83.8

83.6

83.7

83.9

83.6

83.5

83.2

82.5

81.7

91.8
99.2
106.0
95.7

64.4
67.1
66.4
73.0

89.8
93.6
98.9
97.4

60.9
45.7
36.1
58.8

79.2
78.1
80.9
88.3

82.1
86.1
93.3
100.2

81.0
79.8
83.7
98.4

81.1
80.6
85.4
99.6

81.3
82.3
85.4
101.2

81.7
82.7
89.0
99.9

81.2
81.9
84.0
96.4

80.3
81.5
84.7
93.9

79.9
77.7
80.2
96.9

78.9
74.9
76.7
97.1

78.2
77.3

Nondurable goods materials
Textile, paper, & chem. mat.
Pulp & paper materials
Chemical materials

91.1
92.8
98.4
92.5

66.7
64.8
70.6
64.4

88.1
89.4
97.3
87.9

70.7
68.8
79.9
63.5

83.8
84.3
92.1
81.6

90.1
91.5
98.1
90.7

88.7
89.6
93.2
88.4

88.7
89.8
93.7
88.5

89.2
90.6
95.0
89.5

88.8
90.1
95.1
88.6

87.5
88.8
95.1
86.7

88.3
89.4
96.4
87.4

87.7
88.5
94.7
86.9

87.1
87.8
94.2
85.9

86.7
87.1

Energy materials

94.6

86.9

94.0

82.3

88.7

84.9

85.5

83.8

83.9

84.3

85.4

86.1

86.3

86.2

84.8

1989
Ql

Qll

Qlll

QIV

1988
QIV

1989
Ql

Qll

Qlll

QIV

Materials
Durable goods materials
Metal materials
Raw steel
Aluminum

Table 4

Output, Capacity, and Capacity Utilization
Quarter/v. seasonally adjusted
Capacity

Output

Utilization

1988
QIV

1989
Ql

Qll

Qlll

QIV

1988
QIV

128.0

127.6

127.9

128.6

128.2

150.8

151.7

152.6

153.5

154.4

84.9

84.1

83.9

83.8

83.0

Durable goods materials
Metal materials
Raw steel
Aluminum

139.2
94.8
79.5
97.8

138.6
92.3
79.8
98.5

139.0
90.0
76.2
99.1

140.4
91.4
78.2
98.9

138.5
86.9
73.6
96.2

169.0
109.8
89.2
97.9

170.1
110.2
89.6
98.7

171.3
110.6
90.2
99.2

172.5
111.0
90.8
99.7

173.7
111.4
91.4
100.2

82.4
86.3
89.1
99.9

81.5
83.8
89.0
99.7

81.1
81.4
84.5
99.8

81.4
82.3
86.1
99.2

79.7
78.1
80.5
96.0

Nondurable goods materials
Textile, paper, & chem. mat.
Pulp & paper materials
Chemical materials

135.4
138.1
148.6
144.1

136.3
139.2
148.4
145.4

137.1
139.8
146.1
145.7

137.9
141.1
149.8
146.5

138.0
140.6
151.6
145.9

151.2
151.8
152.3
159.3

152.7
153.5
154.0
161.4

154.2
155.3
155.8
163.7

155.8
157.0
157.6
165.9

157.4
158.8
159.4
168.2

89.5
91.0
97.6
90.5

89.3
90.7
96.4
90.1

88.9
90.0
93.8
89.0

88.5
89.8
95.1
88.3

87.7
88.5
95.1
86.7

Energy materials

102.0

100.7

100.7

99.8

101.7

118.7

118.4

118.3

118.1

118.0

86.0

85.0

85.1

84.5

86.2

Series
Materials

Explanatory Notes.
Definition. This release contains estimates of output, capacity, and capacity utilization for die nation's
factories, mines, and electric and gas utilities. Output data are die 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 arc 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 mat a plant can maintain widiin die
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 die 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 die large and
heterogeneous database, changes in utilization rates may be more meaningful in die analysis of business
condition* than any particular level of diese rates.
Groupings. Estimates of capacity and industrial production are aggregated to primary and advanced
processing industries, to durable and nondurable manufacturing industries, and to total manufacturing.
The mining, manufacturing, and utilities estimates aggregate to me total index. Primary processing

includes textile mill products, paper and products, industrial chemical*, 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, learner 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 die items
included in die primary processing grouping of manufacturing, as well as some of die output of die
advanced processing industries, mines, and utilities—such as iron ore, crude oil, semiconductors, and
electricity sold to industry.
Sources. The basic methodology used to estimate die series is discussed in Richard D. Raddock, "Revised
Federal Reserve Rates of Capacity Utilization," Federal Reserve Bulletin Vol. 71 (October 1985), pp.
754-66. Historical utilization rates since 1967 (1948 in the case of manufacturing) are included in die
statistical supplement to die October 1987 capacity utilization release. Copies may be obtained from
Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
Release schedule for 1990. At 9:15 ajn. on January 17, February 16, March 16, April 17, May 15, June
15, July 17, August 16, September 14, October 17, November 14, and December 14.

NOTICE
A revision to Federal Reserve indexes of capacity utilization, industrial production, and electric power use by industries will be
published with the release of the March indexes on April 17,1990. At the same time, the Federal Reserve G.3(402) release,
Capacity Utilization, and the G12.3 statistical release, Industrial Production, will be combined into the single publication:
G17(419) Industrial Production and Capacity Utilization
Indexes of Output, Capacity, Capacity Utilization,
and Electric Power Use by Industries.
Points of Information:
• The capacity and industrial production indexes will be shown on a 1987 basis, both in terms of value-added
weights and base period. Indexes of electric power use by industries will be rebased to 1987.
• Revisions will date from 1967 for capacity and capacity utilization; from 1977 for industrial production; and
from 1972 for electric power.
• Historical data will be available on magnetic tape from the National Technical Information Service
(703-487-4650).
• The separate system of Capacity Utilization for Materials will be discontinued. Many of its components will be
included in Mining and in an improved Primary Processing aggregate for Manufacturing. The revisions and structure
modifications to the Capacity and Capacity Utilization indexes will be presented in an article in the May Federal Reserve
Bulletin.
• Data shown on the new combined release will be available on the day of issue through the Department of
Commerce's online Economic Bulletin Board (202-377-3870).