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FEDERAL RESERVE statistical release




G.3 (402)

For immediate release
January 16, 1981
CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS
December 1980

Capacity utilization in manufacturing increased 0.5 of a percentage point in December to 79.8 percent. Producers of industrial materials
operated at 81.2 percent of capacity, up 1.0 percentage point from the
November rate. These increases were smaller than in the three preceding
months. The December rate for manufacturing was 4.9 percentage points
above its July 1980 low; the rate for materials producers was 7.5 percentage points higher. However, the December rates for both were still nearly
7-1/2 percentage points below their highs in 1979.
The utilization rate for primary processing industries rose 1.0
percentage point in December to 80.6 percent, while the rate for the
advanced processing industries edged up 0.1 of a percentage point to 79.3
percent. Among the primary processing industries, large increases occurred
in operating rates for producers of nonferrous metals (partly because of
a further post-strike surge in output of copper), iron and steel, petroleum
products, and textiles. Capacity utilization rose more moderately for
paper, chemicals, and fabricated metal products industries. Among the
advanced processing industries, the utilization rates for producers of
both electrical machinery and instruments increased moderately again in
December. In contrast, the operating rate for motor vehicles and parts
producers declined sharply in December, after increasing substantially
in each of the three preceding months.
Producers of durable goods materials utilized 77.6 percent of
their capacity in December, 1.4 percentage points above the November rate.
The operating rates for producers of nondurable goods materials and energy
materials both rose 0.5 of a percentage point, to 85.2 percent and 85.0
percent, respectively.

MANUFACTURING

PERCENT

INDUSTRIAL MATERIALS

100

TOTAL

80

60
100

NONDURABLE GOODS

PRHARY PROCESSMG

ADVANCED PROCESSING

DURABLE GOODS

I

I

I

1968

I

I
1971

I

I

I
1974

t

60
1977

1980

1971

1974

i

1977

l

l
1980

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

Manufacturing
SERIES
M A N U F A C T U R I N G , TOTAL
P R I M A R Y PROCESSING
A D V A N C E D PROCESSING

1973|
l_ HIGJil
f
88.0|
1
1
93.8)
1
85.5|
1

1975
1979J
LOM_1 DBC.I
1
69.0
84.1|
1
1
68.2
86.3|
1
69.4
82.8|
L
I
OUTPUT
1980
I
11.

MONTHLY CAPACITY UTILIZATION
1980
JAN.
PBB^_
BIB.
APB,
H11L

AUG.

SEP.

OCT.

NOV.

DEC.

80.3

75.7

74.9

75.5

76.7

78.1

79.3

79.8

83.8

80.5

75.8

72.7

70.9

72.5

75.2

77.6

79.6

BO. 6

82.2

80.1

78.6

77.4

77.1

77.1

77.7

78.5

79.2

79.3

1979
I'

CAPACITY
1980
I
II

1979
IV

UTILIZATION
1980
I
II

84.4

83.4

77.9

75.7

79. 1

86.9

85.1

76.3

72.9

79. 3

83.0

82.5

78.7

77.3

79.0

AUG.

SB.P.V

O.CT.

NOV.

DEC.

74.6

76.4

78.4

80.2

81.2
77.6

82.8

86.4

85.2

82.7

82.6

j

153.4

152.8

143.9

141.0

P R I M A R Y PROCESSING

162.5

160.5

145.0

139.6

A D V A N C E D PROCESSING

148.5

148.8

143.3

141.8

146.21

M A N U F A C T U R I N G , TOTAL

JULY

83.5

I
I
Jili
I
148.51
1
1
153.0|

1979
IV

JUNE

77.6

83.9

IJI

I
I
I"

181.7

183.3

184.8

186.3

187.1

188.5

190.0

191.5

178.9

180.5

182.0

183.5

17 L

1
187.8J
1
1
193.0|
1
185.0)

III

IV

Industrial Material*
SERIES
MATERIALS, TOTAL
DURABLE GOODS MATERIALS
METAL M A T E R I A L S
N O N D U R A B L E GOODS MATERIALS
T E X . , PAPER, ft CHEN. MAT.
TEXTILE MATERIALS
PIPE* MATERIALS
CHEMICAL MATERIALS
ENERGY MATERIALS

19731

gi<?fli
i
92.61

1
1

91.5|
1
98.31
1
1
94.5J
1
95.1|
1
92.6|
99.4J
95.5|
1
1
94.6|
1

1979
17

1975
LOW

1979J
DSC. 1
1
69.4
86.11
1
1
63.6
83.6|
1
68.6
84.8|
1
1
67.2
90.8|
1
65.3
91.4|
1
57.9
89.3|
72.4
97.6|
64.2
90.5|
1
1
84.8
86.0|
1
OUTPUT
1980
I
1
1

MONTHLY CAPACITY UTILIZATION
1980
?EB.
MAR.
JAN.

APR,

86.1

85.6

84.7

82.1

HAY

JUNE

JULY.

78.3

75.7

73.7

83.6

82.7

82.2

78.8

74.1

70.8

68.0

69.1

70.4

73.4

76.2

84.1

82.0

83.6

77.2

70.0

67.0

58.4

62.2

63.9

71.5

80.4

90.9

90.0

88.3

86.1

81.8

78.7

76.8

78.2

82.7

84.4

84.7

85.2

91.2

90.3

88.5

86.0

81.3

77.1

74.5

76.4

81.6

83.8

34.2

84.9

82.0
93.9
78.7

81.8
93.5
82.1

81.6
93.7
82.5

84.1

83.2

84.5

86.6
96.0
91.2

87.2
94.4
90.1

86.8
93.0
87.9

84.6
90.7
85.2

84.5
90.8
78.3

81.8
91.6
72.7

82.0
88.1
69.6

79.5
90.2
72.5

86.2

87.0

86.5

85.8

85.3

85.8

85.6

85.2

III

IV

1979
IV

CAPACITY
1980
I
II

jll

IT

1979
IV

UTILIZATION
1980
I
II

III

85.0

IV

156.5

156.3

145.1

139.2

149.6

181.2

182.8

156.3

155.0

140.6

131.5

145.1

185.7

187.2

188.6

190.0

119.6

117.1

100.6

86.6

140.7

140.8

140.9

N O N D U R A B L E GOODS MATERIALS

179.2

179.3

166.0

161.9

175.1

197.6

199.8

202.0

204.3

206.5

90.6

89.7

82.2

79.2

84.8

TEX. , PAPER, ft CHIN. MAT.

187.9

187.5

171.9

165.6

182.3

205.8

208.3

211.0

213.7

216.2

91.2

90.0

81.5

77.5

84.3

123.8
148.S
231.8

120.6
146.1
233.6

116.4
142.1
208.3

113.4
142.9
197.9

138.4
153.3
256.8

138.8
154.7
260.4

139.2
156.0
264.6

139.6
157.4
268.7

86.9
94.5
89.7

83.7
91.0
78.7

81.2
90.7
73.6

129.0

130.8

130.0

129.6

129.11 150.3
1

151.8

152.6

86.6

85.6

85.0

MATERIALS, TOTAL
D U R A B L E GOODS HATER; ALS
METAL MATERIAL'S

TEXTILE MATERIALS
PAPER MATERIALS
CHEBICAL MATERIALS
ENERGY MATERIALS
NOTE:

140.6

151.1

184.3

185.8

187.2

86.3

85.5

78.7

74.9

79.9

191.5

84.1

82.8

74.6

69.2

75.7

85.1

83.2

71.4

61.5

89.4
97.1
90.2
153.11
I

85.9

84.3

ESTIMATES OP ACTUAL OUTPUT AID CAPACITY OUTPUT ARE BOTH EXPRESSED AS PERCENTAGES OP 1967 ACTUAL OUTPUT. ESTIMATES OP
CAPACITY UTILIZATION IN PERCENT A R E CALCULATED AS RATIOS OP (1) THE FEDERAL BBSSBfB'S SEASONALLY ADJUSTED INDEXES Of INDUSTRIAL PRODUCTION TO (2) THE COBBBSPONDING INDEXES OP CAPACITY. INDUSTRIAL BATEBIMJJ HU ITEMS BOTH PRODUCED ABD USBD AS INPUTS BY MANUFACTURING PLAITS, HIBBS A N D UTILITIES; INDUSTRIAL MATERIALS COVER M A N Y OP TRB ITBBS RBPBBSBBTBD IB TBB PRIMARY
PROCESSING GROUPING OP MANUFACTURING AS HBLL AS SOBB OP TBB OUTPUT OP HIBBS ABO UTILITIES — SUCH AS IROB 01B, CBUDB OIL, AND
ELECTRICITY SOLD TO IBDUSTBT.
THE 1973 HIGHS ABD 1975 LOWS IB CAPACITY UTILIZATION, SROBI IV TRB TABLES ADC*'.:, ABB SPECIFIC TO BACB SBBIBS AND BAY OCCUR II
DIFFERENT BOITBS. INDUSTRIAL PLAITS USUALLY OPERATE AT CAPACITY UTILIZATION EASES THAI ABB BBLL BELOW 100 PERCENT; NONE OF
THE BROAD AGGREGATE SBBIBS HAS EVER INDICATED A 100 PBBCBIT USB OP CAPACITY.
CAPACITY UTILIZATION RATES ATBRAGBD ABOUT 83
PBBCBBT POB MANUFACTURING FROM 1955 THROUGH 1979, ABD ABOUT 85 PERCENT POB IBDC:?ElAl UTERIALS POB 1967 THROUGH 1979.
II
MANUFACTURING AS A WHOLE, UTILIZATION BATBS AS BIGB AS 90 PBBCBWT HAVE fiBBI BXCSBDUD ONLY IB WARTIME. TBB PBAR RAIBS OP UTILIZATION II 1973 WERE ASSOCIATED WITH SIGNIFICANT UPBABD PRBSSUBB OB PIICBS.
THE METHODOLOGY AID TBB SERIES ARE DESCRIBED II FEDERAL BJSJUJ MEASURES 21 CAPACITY AJ£ CAPACITY UTILIZATION. RBVISBD DATA
ABB FOUID II "CAPACITY UTILIZATION: MANUFACTURING AID MATERIALS, JANUARY 1967—DECEBBBB 1978.** BOTH PUBLICATIONS MAY BB OBTAINED PROM PUBLICATIONS SERVICES, BOABD OP GOVBBBOBS OP THE PBDBBAL BESBBTB SYSTEM, WASHINGTON, D.C.
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