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FEDERAL RESERVE statistical release
G.3 (402)
For Immediate release
CAPACITY UTILIZATION
Manufacturing, Mining, Utilities, and Industrial Materials
January 16,
1987
Capacity utilization in manufacturing, mining, and utilities rose
0.2 percentage point in December to 79.6 percent. The utilization rate for
the industrial sector has risen 0.6 percentage point since September;
nevertheless, the rate in December was one percentage point lower than a
year earlier and also remained below its 1967-85 average.
Manufacturers operated at 80#3 percent of capacity in December,
up 0.4 percentage point from November and about the same as a year ago.
Within manufacturing, producers of durables operated at 76.9 percent of
capacity compared with 85.2 percent for producers of nondurables; producers
of machinery and primary metals continued to operate at low rates, while
utilization at plants producing paper and aerospace equipment was relatively
high.
Utilization in mining rose 0.3 percentage point to 73.7 percent
in December, following a 0.6 percentage point increase the month before.
These were the first increases since January 1986, when the rate was 81.6
percent. A surge in coal production and stabilization in oil and gas well
drilling were factors in this reversal. Electric and gas utilities operated
at 80.0 percent of their capacity in December, down a bit from the preceding
month.
Producers of industrial materials operated at 78.6 percent of
capacity in December, up from 78.5 percent in November.
Capacity Utilization: Summary
Percent of capacity, seasonally adjusted
Series
1973
High
1975
Low
1978
-80
High
1982
Low
1967
-85
Avq.
SEP
1986
IOCT
INOV
I DEC
88.6
72.1
86.9
69.5
81.7
79.0
79.1
79.4
79.6
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
80.6
78.7
83.5
79.6
76.4
84-3
79.7
76.4
84.7
79.9
76.5
85.0
80.3
76.9
85.2
Mining
Utilities
92.8
95.6
87.8
82.9
95.2
88.5
76.9
78.0
87.7
67.9
72.9
78.7
72.8
79.4
73.4
60.3
73.7
80.0
92.0
70.5
69.1
68.4
82.5
76.1
77.9
78.. 5
78.6
Total Industry
Industrial Materials
CAPACITY UTILIZATION
DECEMBER DATA
SEASONALLY ADJUSTED, PERCENT
110
TOTAL INDUSTRY
TOTAL MATERIALS
90
70
50
110
MINING
UTILITIES
90
\ /"
\/
'
\
7
MAKUFACTURING \
/
70
50
110
MANUFACTURING
ELECTRICAL
MACHINERY
90
NONDURABLE
70
50
110
MOTOR VEHICLES
AND PARTS
90
70
50
30
1971
1974
1977
1980
1983
1986
1971
1974
1977
1980
1983
1986
MANUFACTURING, MINING AND UTILITIES
Capacity Utilization
Monthly, seasonally adjusted, percent of capacity
1973 | 1975 1 1978 1 1982 | 1967 1 1985 1
Series
High J Low 1 - 8 0
j Low 1 - 8 5 4 DEC 1
1
j
1 Avq. 1
High 1
1
1
1
1
4
1
86.91
72.1|
88.6|
Total Industry
69.51 81.71 80.61•
87.71
Manufacturing
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
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
91.9|
86.0|
1
87.4(
89.3J
101.9J
105.8|
95.61
85.0|
89.01
85.71
97.11
91.81
77.04
89.2|
87.7|
69.91
86.51
1
1
68.31
89.1|
71.11
85.11
1
1
67.9|
8o.3l
67.11 8t».6j
67.0|
97.11
66.6J 100.31
62.1J
91.11
64.7|
87.41
68.21 86.01
63.71 89.91
52.71 93.31
43.71 93.31
69.61 87.11
74.91 8 8 . 9 |
69.01 81.01
88.81
85.81
92.11
95.61
8d.6|
99. b|
97.51
86.41
71.81
77.6J
58.91
67.71
69.21
83.7|
59.5|
72.3|
87.01
85.11
88.31
9*!. 71
82.91
91.71
89.41
92.41
92.81
i
95.61
98.71
I
87.81
1
95.21
88.5|
87.bl
1
82.9J
83.01
j
1986
APB 1 BAY 1 JUN 1 JUL | AUG l SEP 1 OCT 1 MOV 1 DEC
79.5
79.1
79.0
79.2
79.2
79.0
79.1
79.4
79.6
68.01
80.6|
79.4
79.3
79.7
79.7
79.6
79.7
79.9
80.3
81.71
80.11
80.21
1
83.01
79.04
79.9
65.11
69.5J
83.2
78.5
82.9
78.0
82.7
77.7
62.2
78.4
83.2
78.0
83.7
77.6
83.7
77.9
84.2
77\9
84.6
78-3
63.71
62.91
45.81
37.61
60.81
61.31
62.91
66.91
47.04
36.61
70.71
77.81
69. 1j
I
74.41
76.51
70.61
80.84
67.64
69.71
71.24
78.91
78.74
77.81
80.1)
79.41
81.34
77.9|
78.5|
78.3|
77-91
76.71
76.41
83.41
81-7J
78. 11
81.91
73.91
69.11
81.44
81.14
74.51
73.51
81.01
75.21
85.51
81.61
82.21
77-1
83.6
71.0
64.0
81.9
81.0
71.0
72.0
81.3
80.3
87.3
81.7
83.2
76.3
82.4
68.1
58.9
82.5
79.7
71.1
71.5
78.4
75.6
87.3
80.2
83.5
75.7
82.7
65.1
57.1
77.6
79.8
70.5
70.1
79.7
79.3
87.0
79.7
82.9
76.3
81.7
67.2
60.7
/7.2
79.1
71.4
71.5
80.0
76.1
87.1
80.5
83.0
7o.^
81.6
67.1
59.9
78.3
79.2
71.2
71.5
77.7
70.2
88.7
80.4
83.2
76.4
82.8
67.8
60.4
79.3
80.2
70.2
71.2
80.5
77.0
89.0
80.0
84.0
7fa.4
80.3
68.0
61.6
77.9
80.8
71.0
71.5
76.8
73.7
89.4
78-9
84.8
76.5
80.1
70.6
64.2
80.3
80.3
70.7
71.4
77.1
74.1
89* S
79-6
85.4
76.9
83.51
82.31
84.51
88.41
78.6|
87.7J
84.61
86.01
83.54
79.04
87.4|
93.21
78.31
87. 11
86.41
87.5|
84. 1
78.8
90.2
94.4
80.5
89.6
83.5
87.5
84. 1
78.9
90. 1
93.6
79.6
93.9
85.0
87.2
84.7
79.3
91.1
96.2
81.1
90.1
85.9
87.3
84.6
78-9
*1.b
96.6
80.9
89.0
87.4
87.9
85.0
79.1
92.6
96.8
81.0
92.3
87.0
87.3
84.3
78-5
93.6
95-4
80.5
91-7
86.3
86-1
84.7
77.8
85.0
78.2
85.2
95.8
80.6
89.5
87.2
88.4
97-4
80.4
88.9
87. 5
88.4
88.7
76.94
87.71
8 1 . 1|
76.4
75.5
74.9
73-5
73-1
72.9
72.8
73.4
73.7
78.8
82.1
78.7
82.2
79.4
82.7
80.3
83.6
80.0
83.0
1
78.01
78.21
i
87.9|
88.74
84.51
83.61
80.0
82.3
79.3
82.2
79.2
83.0
79.9
84.3
69.8
80.8
70.7
72.0
79-7
79.9
89-3
79.8
85.6
89.9
1
Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted
Series
Total Industry
Manufacturing
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
Nondurable manufacturing
Food and kindred products
Textile mill products
Paper and products
Chemicals and products
Petroleum products
Rubber and plastics products
Other nondurables
Mining
OUTPUT
1965 1986
1
U4
Qi
U2
U3
Q4
1
1
4
1 2 4 . 7 1 1 2 5 . 0 124.4 125.0 126.01
1
i
1 2 7 . 4 J 1 2 8 . 4 128.4 129.4 130.61
•
1 1 0 . 3 1 1 1 1 . 5 111.1 112.1 113.71
1 3 7 . 8 1 1 3 8 . 5 138.9 139.7 140.81
i
I
127.9|128.3 127.1 127.7 128.91
|
117.01119.8 120.8 120.3
Q2.2i 79.7
74.8 73.7 75.64
1
72.61 68.7 bi.4
61.2
i
100.3|10Q.o 100.0 97.2
107.9(108.4 107.1 106.3 107.91
144.31143.5 140.9 142.0 142.8|
166.61165.4 165.3 166.9 168.54
111.81113-7 110.6 110.5 108.8|
108.41116.6 112.2 106.2 107.91
140.64143.0 144.8 147.3 149.91
139.61141.8 140.9 141.8 141.64
123.61126.0 127.2 128.4 132-24
1
126.81128.6 130.2 131.8 133. 1|
131.01132.3 133.8 134.6
1
j
108.5(108.6 111.8 114.7
1
129.34 132-8 134.8 137.9
1
127.91131.3 132.8 134.1
88.21 91-1 93.0 92-6 90.91
1
149.5)149.7 149.7 155.3
129.4(129.9 131.8 132.5 135.84
•
1
CAPACITY
1
1985 1986
1
Q4
Q1
Q2
Q3
£4
4
1
4
155.4] 156.3 157.1 157.9 158.71
107.1)105.4 99.9 96.6 96.51
1
112.81110.5 108.9 108.8 110.31
120.64119.6 122.2 123.5
1
132.1 131.9 131.74
198:>
Q4
UTILIZATION
198b
Q2
U3
Q1
80.21
80.0
79.2
159-54160.5 161.4 162.4 163.41
79-91
80.0
133. 11 133.6 134.0
175.31 176.7 177.9
1
164.51165.5 166.4
144.1(144.9 145.8
110.64 110.2 109.8
103.71103.0 102.2
123.81 123.9 124.1
133.44 133.5 133.6
195.71 197.2 198.7
228.91230.7 232.2
137.0( 138.1 138.6
142.91143.6 143.1
164.74 165.4 166.1
171.51 173.2 174.9
150.61 151.7 152.8
134.6 135.14
179.1 180.41
8 2 . 8 | 83.5
78.bl 78.4
167.3
146.6
109.4
101.5
124.2
133.7
200.2
233.7
139.<*
142.7
166.9
176.6
153.9
Mt8.2{
1
108.91
I
1
133.81
201.7J
23b.2(
139.71
142.l\
167.61
178.31
155.01
77.71
81.21
74.31
70. 0(
155.6 156.61
1
170.7
123.8
143.2
4
1
166.0
101.8 101.71
178.7
4
152.1 153.44
i
152.41 153.5
166.71 168.1
123.21123.4
140.64 141.4
163.41 164.3
102.31 102.0
172.11 174.3
148.41 149.6
1
132.51132.4
154.5
169.4
123.6
142-3
165.2
101.9
176.5
150.9
U4
79.1
79.4
79.5
79.7
79.9
82.9
78.0
63.3
78.0
84.1
78.1
76.4
82.9
68.1
60.0
60.6
80. 1
70.9
71.2
79.8
78.4
87.2
80.5
83.2
76.3
82.1
67.4
60.3
7d.J
79. b
70.9
71.4
79.4
74.5
88.3
80.3
83.4
76.6
80.91
73.7J
72.81
61.o|
75. 91
85.3|
61.4(
82. 1{
77.5
82.6
72.3
66.7
d U
81.2
72.8
71.7
82.3
81.2
66.5
81.9
83.1
83.21
78.61
88.1)
92.01
78.21
86.2|
86.81
87.2|
83.8
78.7
88.0
iJ.9
79.9
89.3
85.9
86.8
84.3
79.0
90.4
94.7
60.4
91-2
84.8
87.3
84.7
78.8
92.6
96.3
80.8
91.0
86.9
87.1
80.91 79.6
75.6
73.2
8 1 . 0(
69.5
ao.6
70.8
71.6
77.9
75.9
89.4
79.4
85.3
85.0
89.4
88-5
73.3
135.71136.3 136.9 137.5 138.14 83.21 61.1 79.5
79.1 79.9
146.0(147.1 148. 1 149.0 150.0|
8 2 . b | 81.3 82.5
82.9 83.1
»
<
1
1
Note. Data for output are percentages of 1977 output as shown in the Federal Reserve's season1977 actual output. Capacity utilization percentages are calculated as ratios of production to
capacity.
ally adjusted indexes of industrial production. Capacity is also expressed as a percentage of
Utilities
Electric utilities
INDUSTRIAL MATERIALS
Table 3
Capacity Utilization
Monthly, seasonally adjusted, percent of capacity
1982 1 1967 I 1985 1
1973 | 1975 1 197a
Series
H i g h 1 Lou
1 -80 1 Low 1 - 8 5 I DEC 1
i
Hiah
Ava. |
|
Industrial Materials
Durable goods materials
I
92.0|
I
1
91.8|
I
99.2|
i
Raw steel
106.01
Aluminum
95-71
I
I
Nondurable) goods materials
91.1J
i
Textile, paper, and chemical materials 92.81
98.4|
Pulp and paper materials
Chemical materials
92.51
I
I
Energy materials
94.6|
Metal materials
I
J
70.5|
I
I
64. a j
67.11
I
66.4J
73.01
I
I
66.7|
I
64.81
1
70. 6|
64.41
1
1
86.91
•
I
89.11
1
1
89.8J
1
93.61
1
98.91
97.41
i
1
88.11
1
89.41
1
1
68.4|
82.5J
1
1
1
60.91 79.31
1
1
45.71 78.41
1
1
3 6 . 1 | 81.11
58.81 8 8 - 1 |
I
1
1
I
70.61 63.21
1
1
68.61 83.61
1
1
97.31
79.91 91.41
87.91
63.31 80.81
1
1
1
1
1
1
82.2J
89.7|
94.01
I
L.
1
80.31
1
1
76.51
1
71.8|
1
63.31
67.1J
1
1986
APE 1 HA I
1 JUN l JUL 1 AUG | Sfii? 1 OCT 1 NOV 1 DEC
78-7
78.1
78-0
78.3
77.9
78.1
77.9
78.5 78.6
74.9
73.7
73.2
68.3
65.2
63.2
73.7
73.5
73.5
73.5
74.3
74.1
63.8
63.8
64.8
64.9
68.8
68.8
72.1
64.9
72.4
63.2
64.7
63.5
61.4
66.6
58.9
62.6
57.6
62.4
60.1 59.7
63.8 65.2
82.61 83.6
1
83.31 83.6
1
94.31 93.6
79.41 79.4
1
I
86.41 82.8
1
83.5
84.3
85.0
85.5
86.1
85.9
85.7 86.3
84.2
85.1
85.6
86.5
87.4
87.0
86.8 87.4
93.1
80.2
95.9
80.4
97.8
80.2
97.9
81.2
96.1
62.6
95.7
82.5
97.7
81.5
82.9
83.1
d2.J 80.6
0.7
80.1
81.2
03
04
81.5
Table 4
Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted
Series
Industrial Materials
Durable goods materials
Metal materials
Raw steel
Aluminum
Nondurable goods materials
Textile, paper and chemical materials
Pulp and paper materials
Chemical materials
Energy materials
1985
Q4
1986
01
02
114.31114.5 113.3 113.4 114.21
1
1
1
1
118.8 118.8 120. 01
121.11120.9
1
I
75.1 73.1 75.7|
82.61 79.0
1
1
66.2 60.0
I
68.61 71.4 77.7 68.1
I
78.6| 79.1
1
1
1
113.91115.7 116.9 119.7 120.71
1
1
114.0|116.2 117.0 120.4 121.61
I
1
124.81128.8 130.1 135.1
1
113.41115.3 115.4 117.7
1
1
I
1
102.6(102.2 100.6 98.6 98.41
1
I
1985
Q4
143.6| 144.2
1
I
159.01159.9
1
115.51 115.0
1
102.71 101.8
114.71 113.2
1
138.6| 139.0
I
138.01138.4
Q2
144.7 145-3
160.7 161.5
114.5 114.0
100.9 99.9
111.4 109.7
139.5 139.9
138.8 139.2
136.51137.3 138.1 138.9
143.61 144.0 144.3 144.7
1
1
120.91 121.1 121.3 121.4
Explanatory Notes
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. Primary processing includes textile mill products, paper
and products, industrial chemicals, 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, leather 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 the items included in the primary processing grouping of manufacturing, as weli 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.
1986
Q1
145.81
1
1
162.21
1
11J.4j
1
I
1
1
140.4|
1
139.61
1
1
1
1
121.61
1
1985
04
79.6|
1
1
76.21
1
71-i>l
1
66.81
68.51
1
1
82.21
1
82.71
1
91.41
79.01
1
I
84.91
I
UTILIZATION
1986
01
02
Q3
04
79.4
78.3
78.1 78.3
75.6
73.9
73.6
68.7
65.6
64.2 66.8
70.1
69.9
65.6 60.0
69.7 62.1
74.0
83.2
83.8
85-6
86.0
83.9
84.3
86.5
87.1
93.8
80.1
94.2
80.0
97.3
81.4
84.4
82.9
81.2
80.9
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. For mining, manufacturing, and utilities as a whole, and for total
manufacturing, utilization rates as high as 90 percent have been exceeded only in wartime.
Revisions. 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 Richard D. Raddock, "Revised Federal Reserve Rates of Capacity Utilization," Federal Reserve Bulletin, Vol.
71 (October 1985), pp. 754-66. Revised data for 1984-85 as well as historical utilization rates
since 1967 (1948 in the case of manufacturing) are included in the statistical supplement to the
September 1986 capacity utilization release. Copies 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 1987. Approximately 11 a.m. on January 20, February 17, March 16,
April 16, May 18, June 17, July 16, August 17, September 16, October 19, November 16, and
December 16.
@FedFRASER