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FEDERAL RESERVE statistical release
For release at 9:15 a.m. (EDT)
July 14,1989

G.3 (402)

CAPACITY UTILIZATION
Manufacturing, Mining, Utilities, and Industrial Materials

Capacity utilization in manufacturing, mining, and utilities decreased 0.3 percentage point in June
0 83.5 percent. Declines were widespread throughout the industrial sector, with especially large drops for autos,
mining, and utilities. The operating rate for manufacturing fell 0.3 percentage point in June, continuing its
downward trend since the beginning of the year.
Within manufacturing, primary processing industries have borne the brunt of the cutbacks in
utilization during the first half of 1989. In particular, operating rates at producers of iron and steel, fabricated
metal products, paper, and industrial chemicals—all relatively high throughout 1988—are appreciably lower
than at the start of this year. Nonetheless, producers of nonferrous metals, especially aluminum, and of textiles
have continued to run at high utilization rates. The operating rate for advanced processing, on balance, has
changed little so far this year. A notable exception has occurred at producers of motor vehicles and parts, where
utilization has fallen significantly since the start of the year. Offsetting that decline has been continued strength
for nonelectrical machinery as well as for aerospace and miscellaneous transportation equipment.
Utilization for producers of industrial materials was down 0.5 percentage point in June to
83.3 percent. Declines for the materials grouping have been pronounced during the first half of this year, with
relatively larger drops occurring at producers of durable goods materials, such as steel.

Capacity Utilization: Summary
Percent of capacity, seasonally adjusted
Series

1973
High

1975
Low

1978
-80
Hiah

1982
Low

1967
-38
Ave.

1989
Mar

Apr

May

Jun

88.6

72.1

86.9

69.5

81.6

83.8

84.1

83.8

83.5

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

80.7
78.8
83.6

84.1
82.6
86.3

84.4
83.0
86.3

84.1
82.7
86.0

83.8
82.4
85.8

Mining
Utilities

92.8
95.6

87.8
82.9

95.2
88.5

76.9
78.0

86.5
86.7

81.2
83.3

82.2
83.1

82.0
82.9

81.2
81.8

Materials

92.0

70.5

89.1

68.5

82.3

83.7

84.1

83.8

83.3

Total industry




CAPACITY UTILIZATION
JUNE DATA
SEASONALLY ADJUSTED, PERCENT
10
1

110
TOTAL INDUSTRY
TOTAL MATERIALS
90

90

70

70

50

1974

1976

1978

1980

1982

1984

1986

1988

1974

1976

1978

1980

1982

1984

1986 1988

110

50
110

MINING
4^

UTILITIES

90

90

70

70
MANUFACTURING

50

1974

1976

1978

1980

1982

1984

1986

1988

1974

1976

1978

1980

1982

1984

1986 1988

50
110

110
MANUFACTURING
ELECTRICAL MACHINERY

NONDURABLE
90

90

70

70
DURABLE

\ /

*
NONELECTRICAL MACHINERY

50

1974

1976

1978

1980

1982

1984

1986

1988

1974

1976

1978

1980

1982

1984

1986 1988

110

50
10
1

/1-i

TEXTILE, PAPER, AND
CHEMICAL MATERIALS

ALUMINUM

90

90

70

70

RAW STEEL

50

30

1974

1976




1978

1980

1982

1984

1986

1988

1974

1976

1978

1980

\

/

1982

50

1984

1986 1988

30

MANUFACTURING, MINING AND UTILITIES
Table 1

Capacity Utilization
Monthly, seasonally adjusted, percent of ca pacity
1973 1975 1978
-80
Low
High
Series
High

1982
Low

1967
-88
Ave.

1988
Jun

1988
Oct

Nov

Dec

1989
Jan

Feb

Mar

Apr

May

Jun

88.6

72.1

86.9

69.5

81.6

83.0

84.0

84.1

84.3

84.3

83.9

83.8

84.1

83.8

83.5

87.7

69.9

86.5

68.0

80.7

'83.3'

84.3

84.4

84.4

84.7

84.3

84.1

84.4

84.1

83.8

91.9
86.0

68.3
71.1

89.1
85.1

65.0
69.5

82.0
80.2

86.6
81.7

87.9
82.6

88.1
82.6

87.9
82.8

88.4
83.1

87.0
83.0

86.4
83.0

86.6
83.4

86.1
83.2

85.7
82.9

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

78.1
82.9
81.6

81.7
83.0
85.8
83.0
89.5
83.1
81.6
77.4
83.3
75.3
86.2
81.0
81.3

82.8
82.6
91.9
92.8
90.7
83.7
82.2
78.5
84.7
77.0
86.2
83.6
81.2

83.0
63.5
90.4
90.2
90.7
84.8
82.8
78.0
85.5
76.7
85.6
83.6
81.7

83.1
83.6
87.6
86.5
89.1
84.9
83.7
77.3
87.2
79.8
85.6
82.7
82.4

83.2
84.5
90.6
91.6
69.3
84.3
83.9
77.3
86.6
75.7
85.7
83.4
81.7

82.9
83.6
88.4
87.9
39.0
84.1
84.7
77.5
85.4
72.9
86.2
83.2
79.4

82.6
83.6
85.6
84.1
87.5
83.4
85.5
77.3
83.2
72.2
86.2
83.179.8

83.0
82.9
87.0
85.1
89.5
82.7
86.0
77.4
84.2
75.2
86.9
83.4
80.7

82.7
83.2
84.6
81.1
89.2
83.0
86.2
76.8
82.2
73.1
87.2
84.0
80.7

82.4

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

78.8
78.5
79.9
79.0
81.5
78.0
78.2
78.1
78.2

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

83.6
82.1
85.2
88.8
79.3
86.9
85.0
86.0

85.5
79.7
88.3
93.9
86.7
84.4
88.2
85.6

86.4
80.4
89.1
94.7
89.0
86.1
87.7
86.0

86.4
81.1
88.9
93.7
89.1
84.9
87.6
85.7

86.3
81.0
89.1
94.1
89.2
87.5
87.2
85.1

86.8
81.2
90.7
95.1
89.3
87.5
86.0
86.5

86.3
80.8
89.9
93.5
88.7
85.9
85.2
86.6

86.3
80.1
90.1
93.2
88.7
86.5
85.4
87.1

86.3
80.5
91.9
92,2
88.3
86.7
84.9
87.3

86.0
80.8
92.6
91.7
87.5
85.0
84.8
86.8

85.8

Mining

92.8

87.8

95.2

76.9

86.5

81.2

81.9

83.3

83.6

82.2

80.6

81.2

82.2

82.0

81.2

Utilities
Electric utilities

95.6
98.7

82.9
83.0

88.5
87.6

78.0
78.2

86.7
87.9

80.8
84.9

81.0
84.9

80.8
84.0

82.0
84.7

80.9
83.4

82.6
86.0

83.3
86.9

83.1
87.0

82.9
86.6

81.8
85.1

Qll

1988
Qll

Qlll

QIV

1989
Ql

Qll

1988
Qll

Qlll

QIV

Ql

Q
H

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

84.8
82.5
86.2
76.9
79.9
69.6
87.1
88.8
80.3

86.6
86.7

Table 2

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

CapadtV

Utilization

Oil

Qlll

QIY

1989
Ql

136.0

138.4

139.9

140.7

141.4

164.2

165.2

166.3

167.5

168.7

82.8

83.8

84.1

84.0

83.8

141.5

144.0

145.8

147.0

147.7

170.2

171.5

172.8

174.3

175.7

83.2

84.0

84.4

84.4

84.1

Primary processing
Advanced processing

123.9
152.3

125.9
154.9

127.7
156.7

127.8
158.6

127.3
160.1

142.7
186.7

143.9
188.1

145.2
189.5

146.5
191.0

147.8
192.6

86.8
81.5

87.5
82.4

87.9

827

87.3
83.0

86.1
83.2

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

141.0
122.1
87.3
75.8
109.1
119.7
169.6
179.1
117.9
109.9
151.5
151.6
138.1

143.3
122.5
91.8
80.2
113.7
122.1
174.0
181.8
117.5
108.2
152.0
157.0
137.6

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

146.7

173.0
148.4
102.0
89.3
125.8
144.6
209.3
231.5
142.8
149.9
175.3
188.3
168.6

174.0 175.0
148.9 149.4
102.3 102.6
89.5
89.6
126.4 127.1
145.7 146.9
210.6 211.9
232.5 233.5
143.3 .143.8
150.1 150.2
176.4 177.5
190.1 191.8
169.9 171.2

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

81.5
82.2
85.7
84.8
86.8
82.7
81.0
77.4
82.5
73.3
86.4
80.5
81.9

82.4
82.2
89.7
89.6
89.9
83.9
82.6
78.2
82.0
72.1
86.2
82.6
81.0 '

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

82.7

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

142.3
140.9
115.4
149.1
149.5
95.9
173.4
144.5

145.0
143.3
116.6
151.4
154.5
94.9
175.3
147.2

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

154.8

166.3
176.8
128.9
157.7
173.2
111.4
196.8
168.6

168.0
178.2
130.4
159.2
174.9
111.6
199.7
170.9

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

178.1

85.6
79.7
89.5
94.5
86.3*
86.1
88.1
85.7

86.3
80.4
89.4
95.1
88.5
85.0
87.8
86.1

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

Mining

103.4

103.9

104.2

101.8

102.0

127.0

126.3

125.7

125.1

124.7

81.5

82.3

82.9

81.3

81.8

Utilities
Electric utilities

111.9
129.8

115.1
135.2

114.3
132.4

116.0
134.4

116.7
136.5

140.1
155.4

140.4
156.1

140.7156.7

141.0
157.4

141.4
158.2

79.9
83.5

81.9
.86.6

81.3
84.5

82.3
85.4

82.6
86.3

Series
Total industry
Manufacturing

1988

88.6
123.4
185.5
181.6
119-.1
108.9
156.6
164.3
140.0
149.2

96.7

Note. Data for output are percentages of 1977 output as shown in the Federal
Reserve's seasonally adjusted indexes of industrial production. Capacity is also




103.7
149.1
215.4
235.6
145.0
150.0
179.9
196.2
173.8
173.5

112.3

1989

expressed as a percentage of 1977 actual output Capacity utilization
percentages are calculated as ratios of production to capacity.

85.5
82.8
86.1
77.0
82.1
72.6
87.0
83.7
80.6
86.0

86.1
86.9

INDUSTRIAL MATERIALS
Table 3

Capacity Utilization
Monthly, seasonally adjusted. percent of ca pacify
1973 1975 19?8
-80
Low
High
Series
High

1988
Jun

Ave.

1988
Oct

Nov

1989
Jan

ft*

Mar

Apr

May

Jun

83.8

83.3

68.5

83.2

84.7

85.1

84.9

84.6

84.0

83.7

84.1

89.8
93.6
98.9
97.4

60.9
45.7
36.1
58.8

79,1
77.9
80.7
87.8

80.7
80.8
87.3
99.5

82.4
87.3
90.4
99.8

82.7
86.9
89.3
100.5

82.1
84.6
87.6
99.4

82.1
86.1
93.3
100.2

81.5
83.8
87.6
99.2

80.9
81.5
86.3
99.7

81.1
82.8
84.4
101.5

80.6
80.9
83.6
98.4

80.3
81.7

66.7
64.8
70.6
64.4

88.1
89.4
97.3
87.9

70.7
68.8
79.9
63.5

83.6
84.1
9£.O
81,3

87.4
88.6
97,1
87.0

89.3
90.9
97.8
90.2

89.4
90.9
96.7
90.5

89.8
91.3
98.4
90.7

90.1
91.5
98.1
90.7

89.0
90.3
95.8
89.8

88.8
90.2
95.3
89.7

89.2
90.7
94.7
90.1

88.9
90.2
93.5
89.5

88.7
90.0

86.9

94.0

82.3

88.9

84.9

85.3

86.2

86.5

84.9

84.9

85.4

86.2

85.9

84.6

Qll

1988
Qll

Qlll

QIV

1989
Ql

O||

1988
Qll

Qlll

QIV

1989
Ql

Qll

150.1

150.8

151.7

152.6

83.0

84.3

84.9

84.1

83.7

70.5

89.1

91.8
99.2
106.0
95.7

64.4
67.1
66.4
73.0

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

91.1
92.8
98.4
92.5

Energy materials

94.6

Durable goods materials
Metal materials
Raw steel
Aluminum

1967

82.3

92.0

Materials

1982
Low

Table 4

Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted
Capadt y

Outputt
Series

1988
Qll

Qlll

QIV

1989
Ql

Utilization

124.0

126.5

128.0

127.6

127.7

149,3

Durable goods materials
Metal materials
Raw steel
Aluminum

134.1
88.1
77.1
94.8

137.1
92.7
85.9
97.2

139.2
94.8
79.5
97.8

138.6
92.3
79.8
98.5

138.2
90.5

166.8
109.1
88.7
95.5

167.9
109.5
88.9
96.7

169.0
109.8
89.2
97.9

170.1
110.2
89.6
98,7

171,3
110,6

80.4
80.8
86.9
99.2

81,6
84.8
96.8
100.5

82.4
86.3
89.1
99.9

81.5
83.8
89.0
99.7

80.7
81.8

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

130.4
132.4
145.9
135.7

132.8
135.3
148.9
139.4

135.4
138.1
148.6
144.1

136.3
139.2
148.4
145.4

137.2
140.2

148J
m§

151.2
151.8
152.3
159.3

16&7
153,5
154,0
101.4

154.2
155.3

87.9
89.2
97.8
87,3

88.6
90.0
98.8
88,6

89.5
91.0
97.6
90.5

89.3
90.7
96,4
90.1

88.9
90.3

149.2
133.4

149.8
150.2
150.7
157.4

Energy materials

100.6

102.5

102.0

100.7

101.2

119.4

119.0

118.7

118,4

118.3

84.2

86.0

86.0

85.0

85.5

Materials

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 theframeworkof 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 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 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,
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 well as some of the output of the




advanced processing Industries, mines, and utilitie»~-8uch as iron ore, crude oil,
semiconductors, And electricity sold to industry.
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 16th of the
following month. These estimates may revise in each of the next three months
as new data become available. After trie 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 percentage point; that is, in about half of the casej, the absolute value of
the revisionfromthe fifst & 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, '<R«vised Federal Reserve Rates of Capacity Utilization,"
Federal Reserve Bullftm Vol. 71 (October 1985), pp. 754-66. Historical
utilization rates since 1967 (1948 in the case of manufacturing) are included in
the statistical supplement to die October 1987 capacity utilization release.
Copies may be obtained ffpm Publications Services, Board of Governors of the
Federal Reserve System, Washington, D.C. 20$51,
Rounding. Utilization fates, are calculated from unrounded capacity and
production indexes. Aggregates are derived from unrounded detailed
components.
Release schedule far 1*8% At 9:15 a.m. on January 18, February 15, March
16, April 14, May 15t hw 15, July 14, August 16, September 15, October 17,
November 14, and December j<j.