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FEDERAL

RESERVE

statistical

release
For immediate release
July 18, 1977

Capacity utilization in manufacturing is estimated to have
increased slightly in June to 83.5 per cent. The utilization rate in
the primary processing sector, at 85.2 per cent, was unchanged, while
in the advanced processing sector, the rate rose one-half percentage
point to 82.5 per cent. The June increase in the advanced processing
sector is largely attributable to gains in production of equipment.
Capacity utilization in materials is estimated to have increased
by .4 percentage point in June to 83.2 per cent. Utilization rates both
for durable goods materials and for energy materials have increased almost
1 percentage point, while utilization rates for nondurable goods materials
are estimated to have edged down.
Utilization rates in all major sectors are below the values
attained in 1973 and at other post-World War II peaks.

MANUFACTURING
PER CENT

INDUSTRIAL

MATERIALS

105
ENERGY
TOTAL

85

65
100 T
NONDURABLE GOODS

PRIMARY PROCESSING

ADVANCED PROCESSING

1965

1968




1971

1974

1977

1968

1971

1974

1977

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

Manufacturing
MONTHLY
SERIES

|

19791

1975

CAPACITY UTILIZATION
FEB.

MAR.

APR.

MAY

JUMf

80.5

80.9

61.1

80.4

79.7

80.8

81.2

60.2

80.8

62.1

82.5

83.3

83.5

62.1

82.1

62.4

83.1

81.6

82.1

81.21

80.3

§1.5

as. 9

84.1

85.2

•f.t

80.0

81.21
1

•1.6

• .
10

•I.S

ppT.

MANUFACTURING, TOTAL

68.01 69.6
1
1
93.61 67.8

PRIMARY PROCESSING
ADVANCED PROCESSING

85.41
1

70.5

79.3

79.7

OUTPUT
1976

II
MANUFACTURING*

129.4

TOTAL

IV

Jfl

131.1

1 977
I

131.51 133.2

80.1

78.9

1
1 1976
II
I
I
I
1
137.61 161.3

1
1
PRIMARY PROCESSING

136.6

139.3

NOV.

78.5

125.2 126.3

127.51 129.4

168.8

165.61

163.21 164.3

170.11 171.4

1
1

144.6| 167.5

158.8

UTILIZATION
1977

1976

11

III

IV

I-

80.2

80.6

I
60.6|

81.5

82.5

1
81.7|

79.2

79.6

79.91
1

61.1

11
83.1

•1.7

•4.8

•0.6

82.1

1
161.81

159.61 160.6

»

* 81.3

1
I
172.9|

1

132.61 158.0

1

I

162.3

•0.4

00.1

1
1
II
I

1977

IV

1

118.91 140.1

DEC.

CAPACITY

III

1
ADVANCED PROCESSING

1977
JAN.

1976

i

Industrial Materials
MONTHLY CAPACITY UTILIZATION
SERIES

|

19731

HIGHI
MATERlALSt

TOTAL

DURABLE GOODS

MATERIALS

BASIC METAL MATERIALS
NONDURABLE GOODS
TEX., PAPER*

MATERIALS

C CHEM. MAT.

TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS

ENERGY

MATERIALS

93.11 69.7
|.
I
92.51 64.3
1
97.71 66.1
1
1
94.61 67.6
j
94.51 65.5
1
94.41 58.0
100.51

I

1975 | 1976
inw
JUNE

71.6

93.81 64.7
1
1
94.61 82.7

JULY

SFP.

OCT.

NOV.

DFC.I JAN.

FEB.

MAR.

APR.

MAY

JUMt

80.11 79.1
1
1
76.31 75.2
t

80.0

•1.6

•2.1

82.8

83.2

75.7

77.9

78.9

79.8

80.6

87.4

80.8

81.2

81.6

81.0

80.3

80.3

76.5

78.5

78.9

77.8

76.6

76.6

77. 7

73 • 6

61 .9

77.7

79 .2

83.5

86.0

84.9

84.7

85.4

85.0

84.6

83.8

63.6

64.4

84.1

83.3

63.3
91.9
63.4

82.2
90.2
82.6

82.2
90.4

81.1
89.1

80.2
89.5

82.1

84.0

83.7

78.2
88.6
83.4

64.9

83.9

84.4

83.5

83.3

84.6

1976

1977

1
I 1976

1
130.3

132.6

131.81 132.9

137.71 161.7

1
1
135.91 165.5

126.1

130.7

128.41 129.0

110.8

117.1

107.71 107.9

NONDURABLE GOODS MATERIALS

146.6

147.01 149.3

154.81 171.0

TEX., PAPER, G CHEM. MAT.
TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS

151.61 153.7

160.61 178.3

115.5

|
1
114.4 112.1 I 111.1 113.31 139.0

132.5
175.3

131.9
175.1

130.21 131.7
177.61 181.4

120.0

119.9

121.51 121.7

1

NOTE*

135.61 145.7
191.6J 208.7

1

78.4
85.9

78.1
89.5
84.1

79.4

79.5

90.0
86.6

69.2
87.5

87.9

84.3

63.4

83.8

80.9

83.7

85.1

1
|

166.61

145.11

172.5

177.21

180.1

I
1
174.11 175.6
|
182.01 183.6

139.8
146.7
211.2

140.61 141.4
147.91 148.9
2 1 3 . 7 1 216.2

142.7

143.9|

1976

1977

80.6

81.3

76.2

78.4

77.4

81.5

85.9

85.0

85.0

84.0

83.1
90.9
&4.0

81.8
89.9
82.9

84.8

64.0

1
1
|
165.41

1
141.91
150.11
218.71

1
1
144.3

144.71

1

•4.7

|

|

|

1

170.31

80.2
91.1

UTILIZATION

1
|

|
|
141.5

87.0

144.8

1
1
121.5)

67.6

86.3

167.81 160.0

1

151.2

87.1

85.8

144.4|

I

1
|
ENERGY MATERIALS

164.31 165.5

|

151.6

87.0

84.0

166.7

t
117.01 143.1

85.6

81.3

143.7

|

146.9

1
MATERIALS

163.1

82.6

|

|
1

|

GOODS MATERIALS

BASIC METAL

1977

1

|
1

DURABLE

CAPACITY

|

1
1

TOTAL

1
83.81
|
82.5|
1
80.6|
86.11
82.21
1
1
85.31

84.6

OUTPUT

MATERIALS,

1977

AUG.

80.21
1
1
76.51
1
74.61
|

1
64.5|
1
63.31
1
79.71
8b.ll

63.11
1
I
64.4|
1.

80.3

62.7

76.3

79.6

74.5

60.7

85.0

67.4

83.7

86.6

78.6

79.9

88.4
83.9

90.4
87.6

84.3

63.9

ESTIMATES OF ACTUAL OUTPUT AND CAPACITY OUTPUT ARE BOTH E X P R E S S E D AS P E R C E N T A G E S OF 1967 A C T U A L OUTPUT. E S T I M A T E S OF
CAPACITY UTILIZATION IN PER CENT ARE CALCULATED AS R A T I O S OF (II THE INDEXES OF I N D U S T R I A L PRODUCTION TO (2) THE CORRESPONDING INDEXES OF CAPACITY.
INDUSTRIAL M A T E R I A L S ARE THOSE CRUDE AND S E M I F I N I S H E D PRODUCTS THAT ARE BOTH PRODUCED AND USED
AS INPUTS BY INDUSTRIAL ESTABLISHMENTS! THE INDUSTRIAL M A T E R I A L S INCLUDE MOST OF THE COMPONENTS OF THE P R I M A R Y PROCESSING
GROUPING OF MANUFACTURING AS W E L L AS THE INPUTS SUPPLIED TO THE INDUSTRIAL S E C T O R BY M I N E S AND UTILITIES--SUCH AS IRON O R E ,
CRUDE OIL, AND INDUSTRIAL ELECTRICITY.
THE 1973 HIGHS ( A N D ALSO 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 TO EACH SERIES AND MAY OCCUR IN D I F F E R E N T MONTHS.
BUSINESSES USUALLY OPERATE AT C A P A C I T Y U T I L I Z A T I O N R A T E S THAT A R E WFLL B E L O W 100 PER CENT; NONE OF THE BROAD A G G R E G A T E S E R I E S
HAS EVER INDICATED A 100 PER CENT USE OF C A P A C I T Y . C 4 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 PER CENT FDR M A N U F A C T U R I N G
FROM 1955 THROUGH 1975, AND ABOUT 86 PER CENT FOR I N D U S T R I A L M A T E R I A L S FOP 1967 THROUGH 1975. IN M A N U F A C T U R I N G AS A WHOLE,
UTILIZATION R A T E S AS HIGH AS 90 PER CENT H A V E 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 WERE
ASSOCIATED WITH SIGNIFICANT UPWARD P R E S S U R E S ON PRICES.
THE CAPACITY UTILIZATION ESTIMATES A R £ DESCRIBED, A N D H I S T O R I C A L DATA ARE PROVIDED, IN THE NOVEMBER 1976 ISSUE OF THfc F E D E R A L
R E S E R V E BULLETIN. THE PRODUCTION F I G U R E S ARE D E S C R I B E D IN THE JUNE 1976 ISSUE OF THE BULLETIN; C U R R E N T E S T I M A T E S A R E
PUBLISHED IN THE FEDERAL R E S E R V E S T A T I S T I C A L R E L E A S E , I N D U S T R I A L PRODUCTION. G.12.3.