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FEDERAL RESERVE statistical release
For immediate release
July 16, 1982

G.3 (402)

CAPACITY UTILIZATION:

MANUFACTURING AND MATERIALS
June 1982

Capacity utilization in manufacturing declined 0.6 percentage
point in June to 69,8 percent and the operating rate for producers of
industrial materials dropped 0.6 percentage point to 69.0 percent. These
rates were about 10 and 12 percentage points, respectively, below their
year-earlier levels and were close to or below their March 1975 lows.
Within manufacturing, the utilization rate for the advanced
processing industries fell 0.5 percentage point in June to 72.1 percent,
and the rate for the primary processing industries dropped 0.8 percentage
point to 65.5 percent. Operating rates again declined for most major
industry groupings; producers of iron and steel, nonferrous metals,
fabricated metal products, nonelectrical machinery, chemicals, aerospace
and miscellaneous transportation equipment, and stone, clay and glass
were operating in June at utilization rates either below or only slightly
above their lows during the 1975 recession. Capacity utilization rates
rose further for the petroleum products and the motor vehicles and parts
industries.
The operating rate for producers of durable goods materials
declined 0.4 percentage point in June to 63.7 percent. This decline
in June reflected sizable further reductions in utilization rates for
producers of basic metals and of equipment parts and a large rise in
the rate for producers of parts for consumer durable goods. The utilization
rate for nondurable goods materials producers declined 0.8 percentage
point to 72.4 percent, as operating rates decreased for producers of
textile, paper, and chemical materials. Producers of energy materials
operated at 79.5 percent of capacity in June, 0.7 percentage point below
the May rate.




MANUFACTURING

INDUSTRIAL MATERIALS
100

OSfo

—

TOTAL

80

1

1 1 1

1 1

1 1 1 1 1 1 1 1

—

\ I

\\

60

I

I I I I

I I

yv^~

NONDURABLE GOODS

V

f\ff\

V /DURABLE GOODS

i

i i i

1 1 1 1 1 1 11

1970

1973

1976

1979

V

—
80

PROCESSING

I

V

100

PRIMARY PROCESSING

\J

T

\ JTOTAL

V
-»/-\

EN Y

\
1 1
1982

60

I
1973

I

I I I I I I
1976

1979

V

f p
I. I
1982

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
1975
LOU

1981
JUNE

J0LY

AUG.

SEP.

OCT.

NOV.

DEC.

1982
JAN.

FEB.

HAS.

APR.

HAY

JUNE

69.0

79.6

79.8

79 .6

78.3

76.6

74.8

73.1

71.1

72.2

71.6

70.7

70.4

69.8

PRIMARY PROCESSIMG

19731
HIGHJ
1
88.0|
1
1
93.8|

68.2

79.5

80.1

79 .9

78.2

75.7

72.7

69.6

68.5

70.0

68.6

67.1

66.3

65.5

ADVANCED PROCESSING

85.5|

69.4

79.7

79.8

79.4

78.3

77.0

75.8

75.0

72.8

73.6

73.2

72.6

72.6

72. 1

SERIES
MANUFACTURING, TOTAL

I
I

OUTPUT
1981
III

1932
I

IV

"I

CAPACITY
1981
II

152.4

152.5

145.0| 139.8

1
156.5

155.8

ADVANCED PROCESSING

150.2

150.7

143.51 137.1
1
145.81 141.6

132 •0| 195.0
1
141 .11 188.7

192.4

1

PRIMARY PROCESSING

III

MANUFACTURING, TOTAL

138 .11 190.9

196.3
190.4

1
1
III

1982
I
1
193.91 195.2
1
IV

196.4]
1
199.5|
1
194.91
I

197.51 198.6
1
192.0] 193.5

UTILIZATION
1981
II

III

1982
I

IV

;i

I
79.8

79.3

74.81
1

71.6

70.3

80.3

79.4

72.71

69.1

66.3

79.6

79.2

75.91

73.2

72. U

FEB.

MAR.

APR.

MAY

JONE

72.9

7U8

70.4

69.6

69 .0
63.7

I

Industrial Materials
MONTHLY CAPACITY UTILIZATION
SERIES
MATERIALS, TOTAL

•- .1 1982
DEC. ? JAN.
1
72.4J 71.4
1

1973 r
HIGH)

1975
LOB

1981
JUNE

JULY

AUG.

SEP.

OCT.

NOV.

92.61

69.4

81.3

81.9

81.6

80.0

77.7

75.5

91.51

63.6

78.8

79.3

79.4

77.3

74.7

72.2

68.5|

66.2

67.4

66.4

64.9

64.1

98.3|

68.6

78.7

79.5

83.0

79.1

73.9

70.8

65.5|

65.8

64.7

61.1

56.0

53.3

67.2

84.3

83.9

83.0

82.9

80.3

77.3

74.11

73.2

76.5

75.3

74.4

73.2

72.4

65.3

83.5

83.2

82.3

82.1

79.1

75.9

72.21

70.7

74.4

73.7

72.5

71.4

70.5

57.9
72.4
64.2

80.5
93.0
82.0

82.0
92.9
81.2

82.3
93.6
79.7

81.3
95-7
79.2

78.8
92.1
76.2

75.5
92.3
72.4

72.0|
86.51
69.01

68.6
87.6
67.4

71.9
90.7
71.3

73.5
89.4
70.2

73.4
87.3
69.0

73.4
86.6
67.6

84.8

83.7

86.2

85.6

83.0

82.5

82.2

81.61

83.7

83.2

81.8

80.4

80.2

1
1
DURABLE GOODS MATERIALS
HETAL MATERIALS

1
1
NONDURABLE GOODS HATEHIA1S
TEX., PAPEA, t CHBH. BAT.
TEXTILE MATERIALS
PAPER MATERIALS
CHEBICAL MATERIALS
ENERGY HATEBIALS

94.5|
1
95.1|
1
92.6|
99.4|
95.5|
1
94.61

1
1
j
OUTPUT

1981
II

III

1
1982
J

IV

153.4

354.3

144.01 138.7

152.3

152.8

140.21 130.9

112.8

114.2

NONDURABLE GOODS MATERIALS

178*4

175.8

TEX., PAPER, G CfiEH. MAT.

185.9

MATERIALS, TOTAL

1
DURABLE GOODS MATERIALS
HETAL MATERIALS

ENERGY MATERIALS
NOTE:

194.2

1982
I
1
191.51 192.6
1
1
195.31 196.4

III

IV

1981
II

III

1982
I

IV

11

72.0

69.7

66.7

64.2

78.S

78.7

79.6

80.5

70.1|

213.1j 214.6

85.3

83.3

77.21

75.0

73 .3

221.7

223.91 225.6

227.31

84.8

82.5

75.7|

72.9

71.5

141.0
161.9
281.0

141.61 142.1
162.81 163.8
284.4| 287.3

142.4|
164.6]
289.61

81.4
93.9
83.5

81.8
94.1
80.0

75.4J
90.31
72.5|

71.3
89.2
69.6

155.0

1
155.81 156.5
1

1
157.OJ
1

81.1

84 . 9

82.11

142.11 142.3

164.51 161.0

211.2

182.8

169.41 164.5

162.4| 21.9.4

114.5
151.0
231.6

115.5
152.2
224.9

106.81 101.3
147.01 146.1
206.21 200.0
i

103.61 140.6
142.21 160.7
196.61 277.5

125.1

131.6

127.91 129.8

1
1

193.7J

81.2

81.1

1
197.31

1
1
125.6J 154.3

79 .5

UTILIZATION

142.4|
1
1
216.11

190.3

141.9

90.9

1
1
III

1
75.2|
1
1
71.81

76.7| 141.7
1
1
158.41 209.2

99.51

1

TEXTILE MATERIALS
PAPBR HATEBIALS
CHEMICAL MATERIALS

1981
II
III
1
134.91 189.0
1
1
126.71 192.9

CAPACITY

63.9

•1

82.9

80 .0

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 INDJ XES 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 SELL AS SOME OF TBE OUTPUT OF MINES AND UTILITIES — SUCH AS IRON ORE, CRUDE OIL, AND
ELECTRICITY SOLD TO INDUSTRY.
THE 1973 HIGHS AND 1975 LOWS IN CAPACITY UTILIZATION, SHOWN IN THE TABLES ABOVE, ARE SPECIFIC TO EACH SERIES AND HAY 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 FOB 1967 THROUGH 1979. IN
MANUFACTURING AS A WHOLE, UTILIZATION RATES AS HIGH AS 90 PERCENT HAVE BEEN EXCEEDED ONLY IN WARTIME. THE PEAK RATES OF UTILIZATION IN 1973 HERE ASSOCIATED KITH 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 THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. 20551