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FEDERAL RESERVE statistical release
G.3 (402)
For immediate release
July 16, 1981
CAPACITY UTILIZATION:
MAMJFACTURING AND MATERIALS
June 1981
Capacity utilization in manufacturing decreased in June to 79.6
percent from 80.1 percent in May. Prior to the June decline, manufacturing
utilization was essentially unchanged for six months. The June rate is 4.7
percentage points above the July 1980 low of 74.9 percent, and 7.6 percentage points below the March 1979 high of 87.2 percent.
The operating rate for producers of industrial materials was
unchanged in June at 81.3 percent. The utilization rates for producers of
both durable and nondurable goods materials fell, but the rate for energy
materials rose sharply as a result of a post-strike surge in coal production
and increased electricity generation. In the absence of these gains, total
materials utilization would; have fallen substantially.
Within manufacturing, declines in operating rates were widespread.
The rate for primary processing industries dropped 0.5 percentage point to
80.2 percent, while the advanced processing industries rate fell 0.6
percentage point to 79.3 percent. Capacity utilization declined sharply for
producers of iron and steel, paper and products, and electrical machinery,
and rates also were substantially lower for producers of foods, textile mill
products, petroleum products, nonferrous metals, fabricated metals, aerospace
and miscellaneous transportation Equipment, instruments, and stone, clay and
glass. Utilization rates were up slightly in June for the motor vehicles
and parts, and rubber and plastics industries.
Producers of durable goods materials utilized 78.6 percent of their
capacity in June—down from 79.2 percent in May. Raw steel utilization
dropped about 3-1/2 percentage points. The operating rate for nondurable
goods materials decreased 0.5 percentage point to 85.3 percent, as rates
declined for many textile, paper, and chemical materials,and for containers.
The rise in energy materials utilization totaled 3.1 percentage points, to
82.7 percent.
MANUFACTURING
INDUSTRIAL MATERIALS
PERCENT
100
ENERGY
TOTAL
i
V
f
I
1 1
!
! i
_^A
V
!
I
I i
1972
i
I
11
60
100
i i i
I 1
U
'
ADVANCED
PROCESSING
1
1 1 1
i 1
i
i i
NONDURABLE GOODS
PRIMARY PROCESSING
V
I
1
I / TOTAL
V
1 !
/ / D U R A B L E GOODS
1
1 1
1 1
1975
V
1 1 1
1978
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
1973|
HIGHI
1
88.01
|
MANUFACTURING, TOTAL
1975
LQH
1980
JUNE
JULY - AUG
SEP.
OCT
NOV
DEC.j
1981
JAN.
FEB.
MAIt.
APR.
MAY
JUNE
69.0
75.7
74.9
75. 5
76.7
78, 2%
79. 4
79.9
80.0
79.8
79. 9
80.0
80*1
79-6
68.2
72.7
70.9
72. 5
75.2
77. 6
79. 6
80.8
81.2
81.2
80. 6
80*7
80*7
80 .2
69.4
77.4
77.1
77. 1
77.7
78. 5
79. 2
79.6
79.5
79.1
79. 5
79.6
79.9
79 .3
1
PRIMARY PROCESSING
1
93.8|
ADVANCED PROCESSING
85.5|
I
OUTPUT
1980
J
MANUFACTURING, TOTAL
PRIMARY PROCESSING
ADVANCED PROCESSING
1981
IV
II
III
143.9
141.0
148.7| 151.3
145.0
139.6
1
1
157.3
1
I
1
I 143.3 141.8
146.4| 148.2
I
CAPACITY
I
1 i9ao
II
1
III
152. 5| 184.8
186. 3
187. 81 189.3
191. 5
193.
Ill
I
1
1
1
157. 21 190.0
1
149. 7| 182.0
1
1 1980
III
II
1
1981
IV
183. 5
1
1
0|1
UTILIZATION
1981
IJI
IV
I
79.21
77.9
75. 7
76.3
72..9
78*7
77.3
1
79.41
1
79.1|
1 1981
DEC. 1 JAN.
190.8|
195.4|
1
185. 01 186.6
1
188.3|
11
79 .9
81.0
80.5
79,4
79 .5
k
1
1
194.3
I
79.9
Industrial Materials
MONTHLY CAPACITY UTILIZATION
SERIES
1980
1975
LOW j ' JUNE
JULY
AUG.
SEP- - OCT.
NOV.
FEB.
MAR.
APR.
MAY
JUNE
69.4
75.7
73.7
74. 6
76.4
78.4
80.4
81.3|
\
81.7
81.7
81.7
80.9
81,3
81.3
91.5|
1
98.31
1
1
94.51
63.6
70.8
68.0
69. 1
70.4
73.5
76.5
77.3|
78.0
78.2
78.9
78,7
79*2
78.6
68.6
67.0
58.4
62.2
63.9
71.5
81.4
8U0|
82.0
83.2
84.1
80,7
81*3
67.2
78.7
76.8,
78. 2
82.7
84.4
84.3
t
1
86.3|
95.11
•
92.6|
99.4{
95.5|
65.3
77.1
74.5
76. 4
81.6
83.8
83.7
57.9
72.4
64.2
81.8
91.6
72.7
82.0
88.1
69.6
79. 5
90. 2
72. 5
82.0
93.9
78.7
82.1
93.0
82.1
80.7
94.1
82.0
84.8
85.8
85.6
85.2
84.1
83.1
85.5
19731
HIGHI
1
92.6|
1
j
MATERIALS, TOTAL
1
1
DURABLE GOODS MATERIALS
METAL MATERIALS
NONDURABLE GOODS MATERIALS
TEX., PAPBfi, 8 CHEM. MAT.
TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS
1
85.9|
I
79.81
94.2|
85.4|
1
t
ENERGY MATERIALS
94.6|
1
MATERIALS, TOTAL
DURABLE GOODS MATERIALS
86.1
85.0
85.5
85,8
85.3
85.8
84.5
85.2
86*0
85.5
79.8
93.7
85.9
79.2
94.8
85.2
78.2
94.9
83.7
79.9
93.9
84.4
80.4
94.0
85. S
84.6
85.2
84.7
79.7
79,6
1
1
OUTPUT
I
86.7
86.2
1980
II
IIJ
145.1
139,2
140.6
131.5
1981
IV
1
149.81 154.1
1
I
145.1| 151.1
1
1
III
85.0|
1
CAPACITY
1980
1981
1
1
1981
I
n
81.7
81.1
75.81
78.4
78.8
61.5
78,0|
83.1
82.2
79.2
81.5
77.5
85. Of
)
84.51
83.7
91.0
78.7
81.2
90.7
73.6
85.6
85.0
IV
78.7
74.S
1
80.0|
74.6
69.2
1 *71.4
154. 11 184.3
135.8
1
187.21 188.7
1
•
152. 91* 188.6
190.0
191.5) 192.8
1 140.8
t
140.9
141.0| 144. 1
204.3
206.5J 208.5
210.11
220.41
I
1980
III
III
1
IV
II1
1
189.8|
If
1
1
1
194.01
82*7
UTILIZATION
•
•
METAL MATERIALS
I 100.6
86.6
109.9| 117.2
1
1
1
1
I
NONDURABLE GOODS MATERIALS
166.0
161.9
175.51 179.2
179. 71 202.0
TEX., PAPER, 6 CHEM. MAT.
171.9
165.6
182.71 186.8
18&.6| 211.0
213.7
216.2) 218.5
i 116.4 113.4
| 142.1 142.9
208.3 197.9
113.21 111.0
148.91 151.2
226.9| 234.7
i» 156.0
264.6
i
139.6
157.4
268.7
140.Oi
158.81
272.9|
1
1
153.1J
1
TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS
1
ENERGY MATERIALS
NOTE:
i 130.0 129.6
129.5| 130.7
{
1 139.2
i
125. 01 151.8
I
152.6
1
140.3
160.0
276.4
j
<
154.1
i
155.01
i
I
1
80,91
93*8|
83.21
85.9
85^5
85.5
85.6
79.1
94*5
84.9
I
1
80.7
84.6| 84.8
I
J
L.
1
ESTIMATES OF ACTUAL OUTPUT AND CAPACITY OUTPUT ARE BOTH EXPRESSED AS PERCENTAGES OF 1967 ACTUAL OUTPUT, ESTIMATES OF
CAPACITY UTILIZATION IN PERCENT ARE CALCULATED AS RATIOS OF (1) THE FEDERAL RESERVE'S SEASONALLY ADJUSTED INDEXES OF INDUSTRIAL PRODUCTION TO (2) THE CORRESPONDING INDEXES OF CAPACITY. INDUSTRIAL MATERIALS ARE ITEMS BOTH PRODUCED AND USED AS INPUTS BY MANUFACTURING PLANTS, MINES AND UTILITIES; INDUSTRIAL MATERIALS COVER MANY OF THE ITEMS .REPRESENTED IN THE PRIMARY
PROCESSING GROUPING OF MANUFACTURING AS KELL AS SOME OF THE OUTPUT OF MIHES AND UTILITIES — SUCH AS IRON ORE, CRUDE OIL, AND
ELECTRICITY SOLD TO INDUSTRY.
THE 1973 HIGHS AND 1975 LOWS IN CAPACITY UTILIZATION, SHOIN IN THE TABLES ABOVE, ARE SPECIFIC TO EACH SERIES AND MAY OCCUR IN
DIFFERENT MONTHS. INDUSTRIAL PLANTS USUALLY OPERATE AT CAPACITY UTILIZATION RATES THAT ARE HELL BELOW 100 PERCENT; NONE OF
THE BROAD AGGREGATE SERIES HAS EVER INDICATED A 100 PERCENT USE OF CAPACITY. CAPACITY UTILIZATION RATES AVERAGED ABOUT 83
PERCENT FOR MANUFACTURING FROM 1955 THROUGH 1979, AND ABOUT 85 PERCENT FOR INDUSTRIAL MATERIALS FOR 1967 THROUGH 1979* IN
MANUFACTURING AS A BHOLE, UTILIZATION RATES AS HIGH AS 90 PERCENT HAVE BEEN EXCEEDED ONLY IN WARTIME. THE PEAK RATES OF UTILIZATION IN 1973 HERE ASSOCIATED HITH SIGNIFICANT UPWARD PRESSURE ON PRICES.
THE METHODOLOGY AND THE SERIES ARE DESCRIBED IN FEDERAL. RESERVE MEASURES OF CAPACITY AND CAPACITY UTILIZATION, REVISED DATA
ARE FOUND IN "CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS, JANUARY 1967—DECEMBER 1978.« BOTH PUBLICATIONS HAY BE OBTAINED FROM PUBLICATIONS SERVICES, BOARD OF GOVERNORS OF TBS FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. 20551
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