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FEDERAL

RESERVE

statistical
G.3

release

(402)

For immediate release
July 16, 1979
CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS
June 1979

The utilization of manufacturing capacity in June declined by
0.5 percentage point from the May rate. Since March, the utilization
rate for manufacturing has declined 1.3 percentage points and in June,
at an 85.0 percent rate, was 3 points below its 1973 high.
Industrial materials producers operated at 86.6 percent of their
capacity in June, compared to 86.8 percent in May. The industrial materials
rate has declined by 1.5 percentage points since the end of 1978 and was
6.5 percentage points below the 1973 high.
The June decline of the overall manufacturing utilization rate
was mainly concentrated in the advanced processing industries and within
those in the motor vehicle and home goods industries. Since March the
utilization rate for the advanced processing industries has declined by 1.3
percentage points. In June the rate of utilization in advanced processing
industries was only 1.4 percentage points from its 1973 high. The rate for
primary processing was nearly 7 percentage points below its 1973 high and
has declined2.5 percentage points since last December.
Manufacturing capacity utilization in the second quarter at 85.0
percent was 1.1 percentage points below the first quarter rate, and materials
capacity utilization at 86.6 percent was 0.8 percentage point below the first
quarter irate.
INDUSTRIAL

MANUFACTURING

MATERIALS

PER CENT
100

TOTAL

80

60
100

I

I

I

NONDURABLE GOODS

PRIMARY PROCESSING

80
ADVANCED PROCESSING

DURABLE GOODS

I

60
1967




1970

1973

1976

1979

1970

I

I
1973

I

I

I
1976

I
1979

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

Manufacturing
MONTHLY CAPACITY UTILIZATION
SERIES

19731

HIGHI
1
88.01

MANUFACTURING, TOTAL

1975

LOW
69.6

1979

1S78

JUNF

JULY

84.3

SEP.

nri.

85.0

84.7

AUG.

85.3

85.5

DEC.

JAN.

FEB.

MAR.

APR.

MAY

JUNE

86.3

85. B

NOV.

86.0

85.9

86.3

84.6

85.5

85.0

PRIMARY PROCESSING

93.6

68.1

87.1

87.3

87.7

89.3

88.6

89.0

89.4

88.3

88.1

88.1

87.0

37.2

86.9

ADVANCED PROCESSING

85.4

70.4

82.8

83.4

83.5

83.6

83.8

84.0

84.6

84.8

84.7

85.3

83.3

84.7

84.0

CAPACITY

OUTPUT
1978

1979

1979

1978

II

I
I

150.61 152.5

152.1

172.0

173.7

175.4|

177.1

178.9!

161.8

178.5

180.2

181.9) 183.8

185.81

147.1

168.5

170.2

171.81 173.4

III

144.4

147.7

IV

PRIMARY PROCESSING

154.1

158.2 161.91 162.1

AOVANCEO PROCESSING

139.3

142.1

1

IV

III

I

MANUFACTURING, T O T A L

1
1
I I
I
1

I

II

1
1

1
1
I

I
I

1979

III

84.0

85.0

86.3

87.8

82.7

83.5

I
1
1

1

144.5! 147.3

UTILIZATION
1978

175.11

|

1

IV
1
85.91
I
1
89.01
1
*4.1|
1

- 1
1
86.1

85.0

88.2

87.0

84.9

R4.0

Industrial Materials
MONTHLY C A P A C I T Y UTILIZATION
SERIES
MATERIALS, TOTAL
DURABLE GOODS M A T E R I A L S

BASIC METAL MATERIALS
NONDURABLE GOODS M A T E R I A L S
T E X . , P A P E R , £ CHEM. M A T .
TEXTILE MATERIALS
PAPER M A T E R I A L S
CHEMICAL M A T E R I A L S
ENERGY MATERIALS

|

1973J
HIGHI

1975

93.11

69.7

85.1

R5.7

85.9

64.3

82.8

84.5

85.3

1
1
92.5!
1
97.7|
1
1
94.6!
1
94.51
1
94.41

100.51
93.8!
1
1
94.61
1

OCT.

NOV.

DEC.I

1979
JAN.

FFB.

MAR.

APR,

MAY

JUNE

86.3

87.1

87.6

88.1!

8^.4

87.1

87.6

86.4

86.8

R6.6

86.1

87.0

87.3

88.21

87.3

86.5

87.2

85.4

86.2

86.1

84.8

83.5

85.1

83.4

83.8

88.6

88.7

89. A

88.8

89.2

Q8.B

87.3

87,6

88.2

88.0

88.2

»7.R

79.4

81.1

1978

LOW

JUNE

JULY

AUG.

SEP.

1
I

66.1

80. 8

67. 8

88.7

65.5

87.0

65.6

86.4

87.4

87.9

87.5

87.2

87.8

88.2

89.0

86.5

85 . 5

83.1

86 . 7 86.9

58.0

81.7

80.2

81.9

86.9

84.4

88.2

87.7

87.7

87.8

87.8

87.2

87.6

88.1

89.0

81.9!
86.8|
88.31
1
|

81.1

90.2

86.3

85.6

84.8

86.0

86.2

86., 9 1

81.1

81.8

82.7

86.1

1979
III

IV
1

I
I

II
I

153.2

171.7

154.1

150.4

155.21 155.2

89.8

90.0

85.8

85.8

86.1

85.1

84.9

SB. 5

84.8

BASIC METAL M A T E R I A L S

117.5

124.6
163.2

166.91 169.5

I
I

173,0

174.2! 175.6

176.9

175.2

176.3

177.4! 178.4

146.1

146.5

146.81 147.1

171.4

184.4

186.5

188.51 190.7

177.7

193.1

195.4

197.5! 199.8

117.1
139.7
201.4

117.3
134.8
204.4

144.1
154.8
230.1

144.7
155.8

145.21 145.8
156.9! 158.0
236.81 240.2

179.4

82.2

85.3

80.4

85.1

192.7

88.5

87.5

201.9

86.8

86.2

1
1

119.41 117.4
137.21 137.6
209.51 215.8

1

1

233.5

1
1

81.2
90.3

81.0
86.5

87.5

87.5

84.9

85.6

1
1

128.7J 129.0

128.21 147.8

1

127.0

86.0

|

1

172.21 175.2

84.5

1

1
1

168.4

II
I

1
1

1

167.7

11

1

.129.4! 124.2

163.2

IV

1979

1978

I

1
1

NOTE:

90.0

1979

I
I

144.0

125.5

89.9

UTILIZATION

1978

I

DURABLE GOODS MATERIALS

ENERGY MATERIALS

88.8

89.6

I

152.61 153.4

TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS

87.6

80.1
88.9

81.2

84.7

CAPACITY

148.7

TEX., PAPER, £ CHEM. MAT.

82.9

.

145.1

NONDURABLE GOODS MATERIALS

86.9J

71.8
64.7

1978

M A T E R I A L S , TOTAL

87.7

1

OUTPUT
I
I

!
89.11
1
1
88.31
|

1

148.4

148.91 150.2
1

151.0!
1

1

IV
1
87.61
1
1
87.5!
I
88.1!
1
1
88.5!
1
87.21
1
82.2!
87.41
88.5!
1
|
86.41
1

M

87.4

86.6

87.0

85.9

84.4

88.9

89.0

87.7

88.0

80.5
87.1
89.8

85.9

84.9

E S T I M A T E S OF ACTUAL OUTPUT AND C A P A C I T Y OUTPUT ARE BOTH EXPRESSED AS P E R C E N T A G E S OF 1967 ACTUAL OUTPUT. E S T I M A T E S OF
CAPACITY UTILIZATION IN PERCENT ARE CALCULATED AS R A T I O S OF (1) THE F E D E R A L R E S E R V E * S SEASONALLY ADJUSTED INDEXES OF INDUST R I A L PRODUCTION TO (21 THE CORRESPONDING INDEXES OF CAPACITY.
INDUSTRIAL M A T E R I A L S ARE ITEMS BOTH PRODUCED AND USED AS INPUTS 8Y MANUFACTURING PLANTS, M I N E S AND U T I L I T I E S ; INDUSTRIAL M A T E R I A L S COVER M A N Y OF THE ITEMS REPRESENTED IN THE P R I M A R Y
PROCESSING GROUPING OF M A N U F A C T U R I N G AS W E L L AS SOME OF THE OUTPUT OF M I N E S A N D U T I L I T I E S —
SUCH AS IRON CRE, CRUDE OIL, AND
ELECTRICITY SOLD TO INDUSTRY.
THE 1973 HIGHS AND 1975 L O W S IN C A P A C I T Y U T I L I Z A T I O N , SHOWN IN THE T A B L E S ABOVE, ARE SPECIFIC

D-IFFERENT MONTHS.

TO EACH S E R I E S A N D MAY OCCUR IN

INDUSTRIAL PLANTS USUALLY OPERATE AT CAPACITY UTILIZATION RATES THAT ARE WELL BELOW 100 PERCENT; NONE OF

THE B R O A D A G G R E G A T E S E R I E S HAS E V E R I N D I C A T E D A 100 PERCENT USE OF CAPACITY. C A P A C I T Y U T I L I Z A T I O N R A T E S A V E R A G E D ABOUT 83
PERCENT FOR M A N U F A C T U R I N G FROM 1955 THROUGH 1977, AND ABOUT 85 PERCENT FOR I N D U S T R I A L M A T E R I A L S FOR 1967 THROUGH 1977. IN
M A N U F A C T U R I N G AS A WHOLE, U T I L I Z A T I O N R A T E S AS HIGH AS 90 PERCENT HAVE B E E N E X C E E D E D ONLY IN W A R T I M E .
THE P E A K R A T E S OF U T I L I Z A T I O N IN 1973 W E R E A S S O C I A T E D WITH S I G N I F I C A N T U P W A R D PRESSURE ON PRICES.
THE CAPACITY U T I L I Z A T I O N E S T I M A T E S ARE DESCRIBED, AND HISTORICAL DATA ARE PROVIDED, IN FFOERAL RESPRVF M F A S U R F S Q£ C A P A C I T Y
AHD CAPACITY UTIi.IZ.AT ION- THIS PUBLICATION MAY BE OBTAINED FROM PUBLICATION SERVICES, B O A R D OF GOVERNORS OF THE F E D E R A L RfcS E R V E SYSTEM, WASHINGTON, O.C. 20551. THE PRICE IS 11.75 PER COPY; FOR TEN OR MORE, $1.50 EACH.