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FEDERAL RESERVE statistical release G.3 (402) Foi immediate release July 17, 1980 CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS June 1980 Capacity utilization in manufacturing full 2.3 percentage points in June to 76.1 percent. The utilization rate of industrial materials declined 3.0 percentage points in June to 76.5 percent. Both rates were the lowest since the fall of 1975. In the second quarter of 1980, the manufacturing operating rate was 78.4 percent, down from its recent high of 86.7 percent in the first quarter of 1979. The second quarter materials utilization rate was 79.5 percent, 8.7 percentage points below its latest high in the fourth quarter of 1978. The decline in operating rates again was widespread in manufacturing* In June, the utilization rate for primary processing declined by 3.4 percentage points to 73.5 percent. The advanced processing industries rate fell 1.8 percentage points to 77.5 percent. The monthly utilization rate for the iron and steel industry continued to drop sharply, and the rates for textiles, paper, electrical machinery, nonferrous and fabricated metals all declined substantially. Cutbacks also occurred in the capacity utilization rates for chemicals, petroleum, rubber, nonelectrical machinery, aircraft, and stone, clay, and glass. For motor vehicles and parts, the operating rate in June remained unchanged at about 53 percent, only slightly above its February 1975 cyclical low. Producers of durable goods materials operated at 72.4 percent of capacity in June, 3.1 percentage points below the May rate. The monthly utilization of nondurable goods materials was off by a more sizable 3.7 percentage points to 79.4 percent. Energy materials utilization decreased from 85.6 percent in May to 84.4 percent in June. MANUFACTURING PERCENT INDUSTRIAL MATERIALS 100 ENERGY TOTAL 80 60 100 NONDURABLE GOODS PRIMARY PROCESSING 80 ADVANCED PROCESSING I 1966 I I ^971 I ! I 1974 I I 60 1977 1980 1971 1974 1977 1980 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 SANUPACTUBING, TO TIL PilflABY PBOCBSSING ADVANCED PROCESSING 19731 HIGH! 1 88.01 1 1 93.8| 1 85.51 1975 LOB 1979 JUNE • JUL^Y. AUG. 69.0 86.2 86.1 84.9 85.3 68.2 87.9 88.9 87.7 69.1 85.2 84.6 83.3 SEP. OCT. MOT. 84.9 84.6 87.3 86.8 86.7 84.2 83.9 83.4 BANOPACTaPING, TOTAL III 1980 JAB. FEB. BAB. APR. HAY JOHS 84.3| 1 1 85.81 84.4 33.8 83.1 80.8 78.4 76.1 86.3 84.6 83.6 80.7 76.9 73.5 83.31 1 83.4 83.3 82.8 80.9 79.3 77.5 CAPACITY ODTPOT 1979 II 1 DEC. 1 I' 153. 1 153.3 153.0| I PBISABY PROCESSING 161.9 163.4 IDT 4 1C ED PROCESSING 148.5 148.1 161.8| 1 148.2| .i 1980 -I 152.7 160.1 148.7 I 1979 178.2 179.5 184.2 185.7 142.9| 175.0 I 176.2 144.2] 1 1 146.4| 1 1 1980 180.8| 182.3 1 1 187.21 188.7 1 177.4| 178.8 UTILIZATION 1980 1979 183.8( t 85.9 190.21 1 180.4| 87.9 88.0 84.8 84.0 1 84.6| 1 1 86.41 1 83.6| 1980 JAB. IXB. BAR. 86.0 85.4 33.8 78.4 84.9 77.0 33.1 79.2 APR. HAY JOVE 34.9 82.4 79.5 76.5 32.1 78.8 75.5 72.4 33.3 77.0 71.3 85.4 Industrial Materials flOITHLY CAPACITY UTILIZATION SERIES BATBBIALS, TOTAL COB ABLE GOO 03 BATRBIALS 3BTAL 8ATEHIALS NONDURABLE GOODS HATBBIALS TEX., PAPER, * CHEH. SAT. • TEXTILE BATEBIALS PAPEB BATEBIALS CHEHICAL BATEBIALS 2IEBGT BATEBIALS 19731 BIGBI I 92.61 1 | 91.51 1 98.2| 1 1 94.51 1 95.1| 1 92.61 99.4| 95.5J 1 1 94.6| 1975 LOI 1979 JUBE JOLY 69.4 87.6 87.9 63.6 86.9 87.3 68.6 90.4 67.2 65.3 SBP. OCT. NOV. 86.9 86.8 36.6 86.4 85.5 35.2 34.7 83.9 92.4 89.8 88.4 85.1 84.7 39.2 89.6 90.0 90.1 90.1 90.4 89.9 90.2 90.7 91.1 91.0 91.0 57.9 72-4 64.2 39.4 94, 1 89.1 88.8 97.3 88.8 87.5 97.4 89.8 90.3 98.1 89.7 90.0 98.2 39.5 39.2 97,9 89.8 84.8 86.8 87.1 36.1 86.2 86.3 87.2 1980 I II 1979 II AD6. . BAIEBJALS, TOTAL DOB ABLE GOODS BATEBIALS BBTAL BATEBIALS NONDUBAfilE GOODS BATEBIALS TEX., PAPEB, & CHEB. BAT. TEXTILE BATEBIALS PAPER BATERIALS CHEBICAL 3 ATE RIALS EHEBGY BATEBIALS MOTE: III 155.6 156.6 157.7 158.7 124.3 126.9 173.4 175.7 181.3 184.3 119.6 140.7 224.8 122.4 147.0 226.6 128.1 .128.3 17 83.6 83.7 82.5 81.6 91.0 39.5 88.3 36.6 83.1 79.4 91.2 89.6 88.6 86.9 33.3 79.4 88.4 96.0 90.8 88.4 91.5 39.4 36.4 92,4 88.2 34.9 91.5 86.3 32.2 88.8 32.3 85.4 87.1 87.7 86.0 35.6 1 156.31 156.0 1 1 156.31 155.2 | 119.5| 117.2 I I 178.31 178.5 1 186.91 186.2 1 123.71 121.5 148.4| 142.7 230. 2 j 232.1 1 1 129.1J 129.9 1 III 146.3 178.1 179.5 143.1 183.0 184.5 140.3 140.7 167.1 'l93.5 195.3 174.3 201.3 203.2 137.3 149.6 250.3 137.7 150.6 253.3 128.4| 1 147.5 148.3 IT 84.4 UTILISATION CAPACITY 0 DIP 01 1979 II 1 DEC. 1 1 86.01 | 1 83.4| 1 84.2! 1 1 90.7| 1 91.1| 1 89.5| 97.5J 90.1| 1 1 86.2| 1980 I 1 181.01 182.5 1 1 186.0| 187.7 I 141.1| 141.5 1 I 197.31 199.1 1 205.31 207.3 1 138.11 138.5 151.6] 152.9 256.3| 259.4 1 | 149.21 149.8 1 III 1979 II 1980 III IT I 184.1 37.3 87.2 86. 3 1 189.3 86.2 86.0 84. 0| 90.2 84. 7| I I I 88.5 35.4 79.5 82.7 75.6 82.9 I I 201.3 89.6 89.9 90.* | 89.6 209.6 90.0 90.7 91. 0| 39.8 87.1 94.0 89.3 88.9 97,6 89.5 89.6( 97.91 39.81 87.7 93.3 39.5 36.9 86.5 86.6| I 150.51 1 ' II I | 1 1 86.7 83.0 83.2 85.3 1 ESTIHATES OF ACTUAL OUTPUT AND CAPACITY OUTPUT ABE BOTH EXPRESSED AS PERCENTAGES CF 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) TBE CORRESPONDING INDEXES OF CAPACITY: INDUSTRIAL MATERIALS ARE ITSHS BOTH PRODUCED AND 3SED AS IN?DTS BY BANUFACTURING PLANTS, BINES AND UTILITIES; INDUSTRIAL 3AT2RIALS COVER SANY OF THE ITEBS BEPRESENTEC IN THE PRINARY PROCESSING GROUPING OF 3ANUFACTUHING AS WELL AS SOBE OF THE OUTPUT OF BINES AND UTILITIES — SUCH AS IRON ORE, CRUDE OIL, AND ELECTRICITY SOLD TC INDUSTRY. THE 1973 HIGHS AND 1975 LOWS IN CAPACITY UTILIZATION, SHOBN IN THE TABLES ABOVE, ARE SPECIFIC TO EACH SERIES AND BAY OCCUR IH CIFP3RZNT BONTHS. INDUSTRIAL PLANTS USUALLY OPERATE AT CAPACITY UTILIZATION RATES THAT ARE WELL 5ELOH 100 PERCENT; NONE OF THE 3ROAD AGGREGATE SERIES HAS EVER INDICATED A 100 PERCENT 3SE OF CAPACITY. CAPACITY UTILIZATION RATES AVERAGED ABOUT 33 PERCENT FOR 3ANUFACTURING FHOH 1955 THROUGH 1978, AND ABOUT 85 PERCENT FOR INDUSTRIAL MATERIALS FOR 1967 THROUGH 1978. IS MANUFACTURING AS A WHOLE, UTILIZATION RATES AS HIGH AS 90 PERCENT HA7B BEEN EXCEEDED ONLY IN HARTIHE. THE PEAK SATES OF UTILIZATION IN 1SL73 WERE ASSOCIATED WITH SIGNIFICANT UPiARD PRESSURE ON PRICES. THE 3BTHCDOLOGY AND THE SERIES ARE DESCRIBED IN FEDERAL BSSBRVE BEASUBES £F CAPACITY AND CAPACITY UTILIZATION. SEVISED DATA ABE FOUND IN "CAPACITY UTILIZATION: 3ANUFACTUHING AND SATEHIALS, JANUARY 1967—DECEMBER 1978." 30TH PUBLICATIONS HAY 3E OBTAINfD PROB PUBLICATIONS SERVICES, BOARD OF GOVERNORS OF THE PEDEBAL RESERVE SYSTEM, BASHIHGTOH, D.C. 20551
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