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FEDERAL RESERVE statistical release
G.3 (402)

For immediate release

CAPACITY UTILIZATION
Manufacturing, Mining, Utilities, and Industrial Materials

March 16, 1984

Capacity utilization in manufacturing, mining and utilities rose
0.9 percentage point in February to 80.7 percent, and the operating rate in
manufacturing alone rose a percentage point to 81.0 percent. In contrast,
the rate for mining fell 0.4 percentage point, reflecting another decline in
oil and gas well drilling, and the rate for utilities dropped as the generation
of electricity declined in response to the less severe temperatures in February.
The February utilization rate for manufacturing was at its highest level since
May 1981 and was only slightly below the average utilization rate observed for
the 1967-1982 period.
Within manufacturing, operating rates for producers of durable goods
rose 1.3 percentage points. In early 1984 utilization in the steel industry
resumed rising sharply following a dip in late 1983, and the rate for electrical
machinery, which was already high, has advanced strongly further. In nondurable
manufacturing, capacity utilization for the paper and rubber and plastics
industries, which also were at above average rates, changed little in February.
The rate for petroleum products jumped 4-1/2 percentage points in February
to 78.0 percent, following a reduced rate of output in December and January
when winter storms occurred. The overall utilization rate for nondurable
goods industries advanced 0.7 percentage points in February to 82.2 percent
of capacity.
The overall operating rate for producers of industrial materials
rose 1.1 percentage point in February to 81.6 percent. The 1967-82 average
was 83.3 percent.

Capacity Utilization: Summary
Percent of capacity, seasonally adjusted
Series

!

1973
HIGH

1975
LOS

1978
-80
HIGH

1982
LOW

1967
-82
AVER.

1983
HOY |

DEC

|

1984
JAN |

FEB

88.4

71.1

87.3

69.6

82.4.

78.7

79.0

79.8

80.7

Manufacturing
Durable
Nondurable

87*9
87,9
89.1

€9. 0
67.6
71.0

87.5
89.9
87.2

68.8
64.8
73.8

81.8.
80.5.
83.9.

78.8
76.8
81.3

78.9
77.4
80.9

80.0
78.8
81.5

81.0
80.1
82.2

Mining
Utilities

91.8
94.9

86.0
82.0

90 . 4
86,8

69.6
79.0

86.5.
88.6.

73.2
83.0

74.7
84.5

75.1
83.0

74.7
82.2

92.6

69.3

88.9

66.6

83.3.

79.6

79.6

80.5

81.6

Total Industry

Industrial Materiel*



CAPACITY UTILIZATION

FEBRUARY DATA

SEASONALLY ADJUSTED, PERCENT

110
TOTAL INDUSTRY
TOTAL MATERIALS
90

70

50
110

MINING

UTILITIES

90

\7

70

50
110
MANUFACTURING

REFINED PETROLEUM
PRODUCTS
90

NONDURABLE

V

70

DURABLE

MOTOR VEHICLES
AND PARTS

30
1969

1972




1975

1978

1981

1984

1969

1972

1975

1978

1981

1984

MANUFMTURINQ, mmm AHB UTSUTIES
Table 1
Monthly, seasonally adjusted, percent of capacity
1973
Series
HIGH
Total Industry

1975
LOtf

1978 \
-80
HIGH

1967 i YEAS
-82
AGO
AYU. \ fiOBTl !

1982
LOff

JOIEfl

JULT1

106 i

SEP 1

OCT 1

HOY 8

8
1
DEC 8

Jiff I

FSB

76.3

77.3

78.2

78.7

78.7

79.0|

79.8

80.7

88.4 !

71.1

87.3

69.6 I

82.4

71.0

74.8

1984

87.9

Primary processing
Durable manufacturing
Stone, clay and glass products
Iron and steel, subtotal
Nonferrous metals, subtotal
Fabricated metal products
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Autos
Aerospace and misc. trans, eojp.
Instruments
Nondurable manufacturing
Foods
Textile mill products
Paper and products

69.0

87.5

66.8

81.8

70,6

74.9

76.4

77.3

78.4

78.9

78.8

78.9|

80.0

81.0

93.7

68.2

91.4

66.2

84.0

70.8

75.7

77.1

81.8

70.0

!

74.4

76.0

78.68

79. 8

80.7

73.6
72.6
59.7
74.1
$8.9
67.3
83.6
74.1
77.3
68.0
74.2

77.41
76.38
61.9J
80.18
72.08
70.78
88.38
83.18
81.68
71.11
76.08

78.8
77.5
69.5
77.8
73.1
71.4
90.5
85.8
83.2
71*7
77.0

80.1

I
I
|
I
|
I
|

71.8
70.6
58.0
75.4
66.6
65.4
81.2
70.8
70.5
67.9
72.8

74.1
72.4
92.1
86.4
82.2
73.3
77.7

75.1
77.6 |
I 79.9 |
I 88.5 |
66.5 I
! 66.2 I
76.6 I

78.7
79.2
86.8
92.3
69.8
75.6
87.2

79.9
80.0
89.9
93.4
70.8

80.98
78.0|
89.26
96.28
71.08
72. 2(

81.5

82.2

68.1

71.5

92.3f
74.78

92^7

69.9

76.5
87.8
69.5

80.8
79.6
90.3
95.3
71.2
76.0
90.9
70.2

80.0
78.0
76.8
75.6
66.0
77.7
71.7
70.0
88.0
80.2
77.1
70.6
75.4
81.3
77,9
89.4
97.0
72.3
77.8
91.3
73.2

$0.6

85.9

79.7
77.8
76.0
75.3
65.1
76.0
71.3
68.8
86.5
78.9
80.5
68.7
75.9
81.5
78.8
91.2
96.3
72.2
77.3
92.0
70.8

79.2J

69.4 I

78.1
76.9
74.6
73.6
62.5
73.9
70.6
68.5
83.8
75.3
78.6
68.3
75.1

80.4

85.5

Manufacturing

75.1

74.7

77.7 1 80.8
I 76.5 1 79.4

83.5
82.9

85.0
84.5

84.8
83.9

83.3
82.1

83.0
81.7

34.58
83.5|

83.0
81.5

82.2
§0. 5

1982
IY

1983
I

II

69.8

71.2

73.9

87.9
88.0
103.3
99.0
86.3
88.3
88.7
98.7
HA
76.0
89.6

|
\
|
|
|
|

67.6
89.4
64.8
64.0 ( 90.4
63.0
69.2 { 97.5 I 38.8 |
60.8
98.2 | 6 2 . 1 i
65.7
90.0 I 60.7 {|
71.8
83.1 | 61.6
62.3
90.6 I 74.7 I
51.3
94.5 I 4 6 . 1
| 91.6 g 35.8 {
68.0 I 93.9 } 6 9 . 1
73.7
92.3 I 7 3 . 1

89.1
85.7
95.4
96.7
86.2
99. 1
97.4

I
|
|
I
I

Mining

91.8

| 8 6 . 0 I 90.4

Utilities
Electric utilities

94.9
97.6

I 82.0
I 82.1

Rubber and plastics products

(

71.0
87.2 I
77.2 } 85.2 I
61.3 I 91.3 |
6 9 . 1 | 95.1 I
65.9
83.6 !
I 93.0 I
I 62^1 i 91.5 |

86.8

87.0

80. 6 \ 70.8
80.5
78.4 \
82.3 |
83.8 |
79.6
79.8
80.0
78.6
M&
!|
78.1 }
83.5

73.8
83.9
7 6 . 5 | 83.3
73.0
86.2
84.2 }i 89.6
64.0
78.7
7 1 . 5 I 69.6
74.0
88.3

| 69.6

86.5

1 7 9 . 0 1 88.6
89. •
I 77.9
1

67.1
66.0
53.6
68.7
62.4
60.1
76.0
63.5
63.9
67.8
72.0

I

77.9
76.5
75.3
70.2
77.5
71.0
69.1
87.5
79.0
77.2
69.6
75.5
81.8
78.3
91.2
96.8
73.4
76.5
91.9

89.4
96.8
71.3

°s« n
79. v

I

l

Table 2

1

dertet

TefioS taidustiy

1982
IY

1983
I

135.3

138.5

144.5

II

III

9

1

1982
IY

1983
I

193.7

194.6

195.5

196.4

197.31

151.8

1
155.51

II

III

IV!

III
77. 3

IY
78.8

134.5

138.4

145.2

152.8

156.5|

194.8

195.7

196.6

197.5

198.48

69. (J

70,7

73.8

77. 4

76.9

Primary processing
Advanced processing

129.3
137.3

137.0
139.7

145.2
145.1

152.8
152.8

156.48
156.11

193.7
195.4

194.3
196.5

194.8
197.6

195.3
198.6

195.88
199.78

66.J5
70.;I

70.5
71.1

74.6
73.5

78. 3
76. 9

79.9
78.2

Stone, ctayand glass products
Iron and steel, subtotal
f
l
bttl
ua
Fabr
Ipn
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aufoa
Aerospace and misc. trans* ccjp«
Instruments

119.8
126.9
49.4
94.3
107.3
139.7
1P5.5
tO 4. 5
81.7
98.7
156.1

124.2
131.8
63.4
102.3
110.6
137.6
170.7
120.0
101.4
97.9
154.0

131.1
139.7
69.2
111.2
116.4
146.2
179.9
130.7
109.5
98.1
155.7

139.1
14S.5
75.0
110.9
125.4
156.6
191.1
145.8
132.3
99.2
161.5

143.7(
152.98
79.28
116.48

184.0
198.8
120.5
148.4
176.2
225.3
220.9
194.4
168.2
142.1
212.0

184.7
199.6
120.1
148.4
176.9
226.7
222.4
193.7
167.8
143.1
213.0

185.4
200.4
120.1
148.4
177.6
228.1
224.1
192.7
167.8
144.2
214.1

186.1
201.1
120.1
fafpfi
178.3
229.6
225.7
191.7
167.8
145.2
215.1

186.8|
201.91
120. 11
148,4)
179.08
231.0)
227.UI
190.78
167.81
146.38
216.21

65.11
63.* J
41,()
63.1&
6 0 . !>
62.<)
74.<>
53.* 1
48.6
69.5
73.7

67.2
66.0
52.8
68.9
62.5
60.7
76.8
62.0
60,4
68.4
72.3

70.7
69.7
57.6
74.9
65.5
64.1
80.3
67.8
65.2
68.0
72.8

74. 7
73. 8
62.5
74. 7
70. 3
68. 2
84. 7
76. 1
78. 8
68.3
75. 1

76.9
75.7
66.0
78.4
71.6
69.9
87.9
80.8
78.6
70.4
75.6

155.7
152.1
123.7
153.5
194.3
120.8

165.5
155.7
139.3
160.5
211.4
122.5
288.3

172.7
159.1
147.6
168.0
220.9
124.2
304.6

210.5
195.8
163,8
175.3
301.3
164.6
335.0

211.7
197.2
163.6
175.S
304.1
163.8
336.0

212.8
198.7
163.4
176.4
306.8
163,0
336.8

213.9
200.2
163.2
176.9
309.4
162,1
337.7

75.1
77.6
79.1
89.2
66.4
69.2
78*6

77.8
78.3
85.3
91.0
68.9
75.2
85.6

80. 7
79. 5
90. 4
95,0
71. 4
76. 6
90, 2

116.7

192.3

116.1

165.9

165.2

165,3

165.4

>
70. S

70.6

67.9

70. 2

73.1

166.2
18?l4

163.6
185.2

169.6
192.5

178.2
203.6

207.4 206.5
237,7 239,2

209.0

211,1

243,0

80.1
78.1I

78,5
77.4

80.8

241.1

215.0|
201.78
163.01
177.4J
312.1|
161«3|
338.5]
'*
165.58
I
212.41
244,98

74. ()
77.7
75.5
87.6
64.* »
73.«>
75.3

117.0

174.98
157.51
146,68
171.58
225.4|
121.81
3IO,9|
•
121.08
•
177.68
202.08

81.3
78.1
89.9
96.7
72.2

252.1

159.0
153.1
129.5
156.9
201.9
113.3
264,1

84.4
83, 8

83.6
82.4

Manufacturing

Nondurable manufacturing
Textile mill products
Papsf find products
Chemicals and products
ftoteer and ptesttoe prode




I

128.21
161.61
200.0|
154.18
132.18
103.08
163.5|

79.8

75.5

91.8

INDUSTRIAL MATERIALS
Table 3

Capacity UtSSIxatten
Monthly, seasonally adjusted, percent of capacity
1973 J 1975 1978 t 1982 | 1967
TEAB
Series
HIGH I LOB 1 -80
L W I - 8 2 | AGO J
O
1 A¥EB; ! BOOTH 1
1 HIGH
I

JOLT!

AOG 1

SEP 1

OCT 1

HO? »

74.4

76.5

77.4

78.6

79.5

79.6

64.2

70.0

72.1

73.6

75.2

76.1

56. 1

61.2

62.3

64.0

65.5

68.0

107.1 | 68.0 102.9 I 40.2 | 84.8
52.1
97.9 ! 5 7 . 9 1 9 0 . 6 58.3
96.8 i 73.4
I
1
1
I
94.4
67.4 I 91.7 I 70.7 t 86.5 75.3

58.2
64.5

59.*
68.0

61.0
71.2

63.3
73.6

Industrial Matoriata

I
92.6 I 69.3
88.9
|
8

Durable good© materials

91.4

Metal materials
Raw steel
Aluminum

1

J0BBI

66.6 ! 83.3 | 7 0 . 1

1 63.5 1 88.4 | 59.8 | 79.7

97.8 | 68.0

95.4

| 46.2 I 82.2

1984
JAV 1

76.5

DEC I
1
79.6|
I
1
76.9|

66.8

66.6|

67.5
75.1

68.6
76.0

70.0
79.8

80. 5

81.6

78.3

79.8

68.1

70.1

Textile, pap@r, and chemical materials
Paper materials
Chemical materials
Energy materials

79.6

80.7

81.1

82.9

84.1

83.8

82.6

83.4

95.1

65.*

92.3

68.6

86.5

74.1

79.2

80.4

80.5

82.6

89.1

83.7

81.9)

82.4

83.1

99«4
95.5

72.4
64.2

9?. 9
91.3

86.3
64.0

93.4
85.1

90.8
69.9

93.1
75.3

96.7
75.9

96.9
75.5

99.0
77.8

99.4
79.7

101.3
79.0

84. «

88.9

78.5

I 88.5

79.2

78.8

62.6

82.8

fli.6

81.4

81.8

99.4|
77. U
I
1
83.3|

99.5
77. 7

94.5

Nondurable goods materials

73.8J
79.0|
1
1
82.2|

1
1
ITI

1962
If

DTILIZATIOH
1983
I
II

1

83.4

83.9

Table 4

Output, Capacity, and Capacity Utiilzation
Quarterly, seasonally adjusted

IV

1983
I

II

Industrial Materials

128.7

134.8

141.7

149.9

Durable goods materials

117.1

125.2

134.7

144.2

Series

1982

III

1
I?i
1

1982
IT

CAPACITY
1983
I
II

III

III

It

191.7

192.3

192.9

193.4

194.0|

67.1

70.1

73.5

77.5

79.6

150.3| 194.8
•
93.7j 140.3

195.2

195.6

196.0

196.5|

60.2

64.2

68.9

73.6

76.5

140.2

139.9

139.8

139.6|

•7.*

56.1

60.7

63.9

67.2

119.4
167.7

119.1
167.7

118.6
167.7

118.51
167.7|
I

41.7
58.1

51.9
59.0

57.7
62.7

61.2
70.9

69.9
76.7
83.4

1

Metal materials

66.5

76.6

84.9

89.3

Raw steel
Aluminum

49.9
97.5

61.9
99.0

68.7
105.1

72.7
119.0

157.0

163.7

171.7

179.1

82.8| 119.7
128.6| 167.6
1
1
183.9| 216.9

217.8

218.8

219.6

220.6)

72.4

75.2

78.5

81.5

160.8

169.3

179.6

188.0

193.8| 228.3

229.4

230.7

231.6

70.5

73.8

77.9

81.2

83.2

147.6
191.9

149.9
204.7

153.4
219.4

162.8
227.8

165.3
294.8

166.1
296.6

166.9
298.3

89.7
65.5

90.7
69.4

92.3
7%.O

97.5
76.4

100.0
78.6

121.5

122.2

121.5

127.4

167.7J 164.4
235.9| 292.8
1
1
127.61 153.3

153.9

154.3

15*. 7

232.7|
1
167.7|
300.1|
1
1
155.31

79.2

79.5

78.7

82.3

82.2

Nondurable goods materials
Textile, paper and chemical materials
Paper materials
Chemical materials
Energy materials

a

OeftnSCfen, This release contains estimates of output, capacity, and capacity utilization for the
nation's factories, mines, and electric and gas utilities. Estimates of actual output and capacity output are expressed as percentages of 1967 actual output. Estimates of capacity utilization
are calculated as ratios, in percent, of the Federal Reserve's seasonally adjusted indexes of Industrial production to the Indexes of capacity. The capacity indexes are based on a variety of
data, Including capacity data In physical units, surveys of capacity growth and utilization rates,
and estimates of capital stock growth. Instead of a formal definition of capacity the concept of
practical capacity Is applied, which Is the greatest level of output that & plant can maintain
within the framework of a realistic work pattern, taking account of normal downtime, and
assuming sufficient availability of Inputs to operate machinery and equipment In place. When
the capacity indexes for Individual Industries are aggregated—for example to total manufacturing—no explicit account is taken of possible general equilibrium constraints such as emerging
Industry bottlenecks.
Qreupgnga. Estimates of capacity and Industrial production for manufacturing Industries are
aggregated to primary processing and advanced processing Industries, to durable and non*
durablo manufacturing industries, and to total manufacturing. The mining/manufacturing, and
utilities estimates aggregate to the total lnd#x. Industrial materials are items produced and used as Inputs by manufacturing plants, mines, and utilities. Industrial materials Include many of
the items Included In the primary processing grouping of manufacturing, e» well as some of the
output of the advanced processing industries, mines, and utllltles-such m Iron ore, crude oil,
B, and ©toctriclty sold to Industry.




Perspective. The historical highs and lows In capacity utilization shown In the tobies above are
specific to each series and did not all occur In the same month. Industrial plants usually
operate at capacity utilization rates that are well below 100 percent: none of the broad aggregates has ever reached 100 percent. For mining, manufacturing, and utilities as a whole, and
for total manufacturing, utilization rates as high as 90 percent have been exoeeded only in wartime.
Revisions. The first estimates for a month are published about the 17th of the following month.
These estimates may revise in each of the next three months as new data become available.
After the fourth month no further revisions are undertaken until an annual or benchmark revision. The median of the revisions In the total manufacturing utilization rate between the first
and fourth estimate is 0.3 of a percentage point; that is, in about half of the cases, the absolute
value of the revision from the first to the fourth estimate is less than 0.3 of a percentage point,
Sources. The methodology used to estimate the series Is discussed in New Federal Reaery*
Meaturea of Capacity and Cepeelty Utilization, Federal Reserve Bulletin, July 1983. Revised
data from 1867-82 are Included In the statistical supplement to the July 1983 capacity utilization release, which may be obtained from Publications Services, Board of Governors of the
Federal Reserve System, Washington, O.C. 20551.
ftouitdlno. The rounding algorithms applied to the capacity, output, and utilization rate series
ore Independent. Aggregates are derived from unrounded detailed components.
Retrace sflfcsdtsto for 1884. Approximately 11 a.m. on February 16, March 16, April 16, May 16.
June 18, Jury 16, August 16, Ssptsmtot? 17. October 17, November 16, and Dscomfeor 17.