Full text of G.3 Capacity Utilization, Manufacturing, Mining, Utilities and Industrial Materials : March 16, 1987

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FEDERAL RESERVE statistical release
For Immediate release

G.3 (402)

CAPACITY UTILIZATION
Manufacturing, Mining, Utilities, and Industrial Materials

March 16, 1987

Capacity utilization in manufacturing, mining, and utilities increased 0.2 percentage point in February to 79.8 percent. From March to
October 1986, output and capacity both grew at about a two percent annual
rate; as a result, the overall utilization rate changed little. After October
1986, however, output gains accelerated, and the overall operating rate
rose 0.8 percentage point between October and this February.
Within manufacturing, the capacity utilization rate for durable
goods increased 0.5 percentage point in February to 76.8 percent, reversing a
decline in the preceding month. A surge in automobile assemblies in February
and a gain in primary metals production accounted for the reversal. Despite
the gain in February, the utilization rate for durables remains relatively
low because of the depressed operating rates for the iron and steel and
machinery industries. In contrast to durables, utilization in nondurable
manufacturing was relatively high at 85.2 percent of capacity even though
the rate declined 0.2 percentage point in February. The small drop in February reflected some easing of rates for nondurable industries that have been
operating at high levels; in addition, the rate for petroleum products dropped
2 percentage points, offsetting part of its January increase.
Producers of industrial materials operated at 78.9 percent of
capacity in February, the same as in the two preceding months. This rate has
declined 0.7 percentage point over the past year because of declines in the
utilization rates for durable goods materials and energy materials.

Capacity Utilization: Summary
Percent of capacity, seasonally adjusted

1982
Low

72.1

86.9

69.5

81.5

79.4

79.6

79.6

79.8

87.7
87.4
88.8

69.9
67.9
71.8

86.5
86.3
87.0

68.0
63.7
74.4

80.6
78.6
83.5

79.8
76.5
84.7

80.0
76.7
85.0

79.9
76.3
85.4

80.1
76.8
85.2

92.8
95.6

87.8
82.9

95.2
88.5

76.9
78.0

87.1
87.5

73.9
80.5

73.8
79.5

75.1
80.4

75.3
80.8

92.0

70.5

89.1

68.4

82-3

78. 4

78.9

78.9

78.9

Loir

88.6

Manufacturing
Durable
Nondurable
Mining
Utilities

Total Industry

Industrial Materials




1967
-86

1978
-80
Hi?*

1975

1973
Higk

Series

1986
NOV

I DEC

1987
IJAN

IFEB

CAPACITY UTILIZATION

FEBRUARY DATA

SEASONALLY ADJUSTED. PERCENT

110
TOTAL INDUSTRY
TOTAL MATERIALS
90

70

50
110

MINING
UT!LIT€S

90

V

MANUFACTURING

70

50
110
MANUFACTURING
ELECTRICAL
MACHNERY
90

NONDURABLE

70

MOTOR VEHICLES
AND PARTS

i 11i111111i I
1972




1975

1978

1981

1984

30
1987

1972

1975

1978

1981

1984

1987

MANUFACTURING, MINING AND UTILITIES
Table 1

Capacity Utilization
Monthly, seasonally adjusted, percent of capacity
1973 ] f975 1 1978 ] 1962 ] 1967 1 1986 1
Series
H i g h | Lev | - 8 0 | how ] - 8 6 ] FSB ]
] Hi<ife 1
1
1 Avq. 1
1
1
1
]
j
88.6] 7 2 . 1 | 86.94 69.5] 81.51 80.21
Total Industry
1
•
i
j
I
87.7] 69.9] 86.5] 68.0] 80.6] 80.2]
Manufacturing
Primary processing
Advanced processing
Durable manufacturing
Stone, ciay and glass products
Primary metals
iron and steel, subtotal
Nonferrous metals,, subtotal
Fabricated metal products
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Automobiles
Aerospace and misc. trans, eqp.
Instruments
Other durables

i

I
1
1
1
68.31
65.1]
71.11 Hbl 11 6 9 . 5 |
I
1
1
67.9] 66.3] 63.71
67.11 86. b] 62.9]
67.01 97.11 45.8]
66.6) 100.3] 37.61
62.18 91.11 60.8|
64. 7| 87.4] 61.31
68.2!
86.0] 62.9|
63.71 89.9] b6.9|
52.7J 93.3] 47.0]
J 93.3] 36.61
87.11 70.7|
7i*l91 66.9] 77.8]
69.0] 81.0] 69. 11
1
71.8] 87.0] 74.41
77.6] 85.1] 76.5]
56.9] 66.3] 70.6]
67.7] 9^.7] 80.8]
69.21 82.91 67.6]
83.7|
91.74 69.7]
59.51 89.4] 71.21
**2m 4 |
72.3|
78.91

91.9]
86.01
I

i

89.3]
I 101.9]
I 105.81
95.61
85. Oi
1 89.0|
85.7]
97.1J
I

77.0]
89.2]
87.71

1986
J0M I JUL 1 AUG i
79.0

-1232
SEP 1OCT 1HOV 1 DEC 1 JAH ] ?BB

79.2

79.2

79.0

79.0

79.4

1
79-6J 79.6

79.8

79.3

79.7

79.7

79.6

79-6

79.8

80.0| 79.9

80.1

81.81
80.01

83.6]
78.6]
I

82.7
77.7

82.9
78.4

83.2
78.0

83.7
77.6

83.8
77.8

84.4
77.7

85.0] 85.1
77.9] 77.7

85.0
77.9

78.6]

75.7
82.7
65.1
57.1
77.6
79.8
70.5
70.1
79.7
79.3
87.0
79.7
82.9

76.3
81.7
67.2
60.7
77.2
79.1
71.4
71.5
80.0
76.1
87.1
80.5
Q3.0

76.2
81.6
67.1
59,9
78.3
79.2
71.2
71.5
77.7
70.2
88.7
80.4
83.2

76.4
82. 6
t»7.ti
t»0.4
79.3
60.2
70.2
71.2
80.5
77.0
69.0
60.0
64.0

76.3
80.2
68.0
61.6
77.8
81.0
70.6
71.4
76.8
73.7
89.4
78.9
84.9

76.5
81.8
70.5
64.3
80.0
80.1
70.0
71.5
77.2
74.1
89.3
79.1
85.7

76.7J
62.41
67.7|
60.3]
79.11
81.0]
69.4]
72-21
79.5|
79.91
88-71
79.4]
87.11

76.3
83.1
66.7
58.4
79.4
81.2
68.8
71.3
80.0
75.8
8d.8
79.1
86.3

76.6

77.0]
83.2}
81.81

77.71
62.31
72.9J
67. 5J
81. 4 j
81.2]
72. 9|
71.4J
84.3|
85.11
86.2|
81.9]
83. 11

83.5]
82.2]
64.9]
88.71
78.7]
87.61
84.7|
86.11

83.9]
79.1]
89-1J
93.81
80.4]
83.3J
86.71
86. 1J

84.7
79.3
91.1
96.2
81.1
90.1
85.9
87.3

64.8
78.9
91.6
96.6
80.9
69.0
87.4
67.9

85.0
79.1
96, y
81.0
92.3
87.0
87.3

84.3
76.5
93.6

84.7
77.9
93.7
95.6
80.:> 80.4
9 1 . 7 69.6
86.3 87.5
8to. 1 68.4

84.7
78.1
95.0
96.8
79.3
90.5
87.9
88.5

85.0]
78.1|
95-5J
98.0]
80-31
91.11
87.9|
88.21

85.4
78.1
94.3
97.4
81.2
94.5
87.5
88-7

87.11

79.41

74.9

73.5

73.1

72.9

72.5

73.9

79.2
83.0

79*9
64.3

78.8
82.1

78.7
62.2

79.3
82.7

80.5
83.4

73.81 75.1
1
79.5| 80.4
82.2] 83.2
1

76.01
79.6]
76.51
81.2]
78.0|
78. 11
78.0]
78.01
1

67.7
81.4
69.0
71.1
83.6
84.6
89-1
79.1
86. 1

1

Nondurable manufacturing
Food and kindred products
Textile m!3l products
Paper and products
Chemicals and products
Petroleum products
Rubber and plastics products •
Other nondurables

68.81
85.8]
92. 11
95.61
88.61
99.6]
97.51
86.4)

I

I
•

92.81
I
95.6|

Mining
Utilities
Electric utilities

82.9]
83.0]

J

95.2]
1
88.5]
87.6|
J

76.9|
1

78.0]
76.21

87.51
88.41

1

1

1
1

8 i l 31

92. b

1

85.2

92.5
88.4
75.3
80.8
83.5

Table 2

Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted
CA P&CIZI

1
Series

1985 1986
Q4 Qt

Manufacturing

i

Primary processing
Advanced processing
Durabi® fTsanyf&cfufing-

Ston@, clay and glass products
Primary rnstals
Iron and *it&s!i subtotal
Nonferrous metals, subtotal
Fabricated metal oroducts
Non6iGctriCEi machinery
WIU

vlvOtif

0WW&V&W

I I I w l i t 131 US'E y

Motor vehic!©s and Darts
ikiitnfnAEhn&<%

rlUlvl i IvUilVw

A@ro&Dacs and misc trans @GD
\ttet runnsnts

Other durables
Nondurable manufacturino
Food and kindred products
Textile mill oroducts
Paoer
and
oroducts
r
apoi oil
IU ^IWWMW***
Chemicals and products
Petroleum products
Rubber and olastics oroducts
Other nondurables
• ^ Wi IWWI MWIV

1 UAlllv

6
1
1
1
1
1

1

• IIWII i Vi 1 VtVlUI I I t j j

^twUMwlw

Mining
Utilities
Electric utilities

Q4

•'•"'•-'

110.3*111.5 111.1 112.1 114.01
13 7. 8 i 38.5 138.9 139.7 140.4]
j
127.9*128*3 127.1 127.7 128.6J
117.0]If9.8 120.8 120.3 120. 1]
82.2] 79.7 '74.8 73.7 74.9]
72.6] 66.7 61.4 61.2 62.5]
100.31100.5 100.0 97.2 98.2]
107.91106.4 107.1 106.3 107.91
144.31143.5 140. 9 142.0 141.21
166.61165.4 165.3 166.9 168.7]
111.81113.7 no.6 110.5 108.8]
108.41116.6 112.2 106.2 107.9]
140,61143.0 144.$ 147.3 149.4]
139.6] 14.1.8 140.9 141. 8 141. 1j
123.6J126.0 127.2- 126.4 133.11
1

t^vi^FV/%1 I v Q I

Q3

J
1
124.71125.0 124.4 125.0 125.9J
1
127. 41 iZ 8. 4 128.4 129.4 130. 4|
i

Total Industry

I.I. W9I

Q2

•'"•••

1985
Q4

02

Q3

Q4

]

A

155.41156.3 157.1 157.9 156.71
i

159.51160.5
1
133.11133.6
175.3|176.7
|
164.51165.5
144.11144.9
11O.6|110.2
103.7|103.0
123.81123.9
133.4(133.5
19 5.71197.2
228.9]230.7
137-01138.1
142.9] 143.6
164.7] 165.4
171.51173.2
150.61151.7

161.4 162.4 163.4]
•

130.2
133.8
111.8
134.6
U2.8
93.0
149.7
131.8
9*.9

131.8
134.6
114.7
137.9
134.1
92.6
155.3
132.5

132.8|
134.31
117.51
139.6]
133.5]
91.9]
158.7|
135.51
1
96.6 96.7]

Q1

1
80.2] 80.0
79.9]« fiO.O

Q2

Q3

79.2

79.1

79-3

79.5

79.7

79.8

Q4

a

82.9
78.0

83.3
78.0

84.4
77-8

166.4
145.8
109.8
102.2
124.1
133.6
19 8. 7
231.2
138.6
143. 1
166.1
174.9
152.8

167.3
146.6
109.4
101.5
124.2
133.7
200.2
233.7
139.2
142-7
166.9
176.6
153.9

168.2]
147.58
108.9}
100.7]
124.4]
133.8]
201.71
235.2]
139-71
142.2]
167.6]
178.31
155.0]

77.71
81.21
74.31
70.0]
81.0]
80.9]
73.71
72- bi
81.b]
75-ill
85.31
81.4]
82.1|

77.5
82.6
72.3
66.7
81.1
81.2
72.8
71.7
Q2.3

76.4
82.9
68.1
60.0
80.6
80.1
70.9
71.2
79.8
78.4
87.2
80.5
83.2

76.3
82.1
67. H
60. J
78.3
79.5
70-9
71.4
79.4
74.5
88.3
HO, 3

83.4

76.5
81.5
68.8
62.1
79.0
80.7
70.0
71.7
77. 8
75.9
89.1
79.1
85.9

154.5
169.4
123.6
142.3
165.2
101.9
176.5
150.9

155.6
170.7
123.8
143.2
166.0
101.8
178.7
152.1,

156.6]
172.01
124.0|

84.3
79.0
90.4
94.7
80.4
91.2
84,8
87.3

84.7
78.6
92.6
96.3
80.8
91.0
86.9
87.1

84.8
78. 1
94.7
96.9
80.0
90.4
87.7
88.4

132.1 131.9 131-71

1 Q3.H
83. 6S
2 S 78.7
7888.1J 88.0
92.01 93.9
78.2] 79.9
86.21 89.3
86.6] 85.9
87.2] 86.8
I
80.9] 79.6

75.6

73.2

73.4

135.7|136.3 136.9 137.5 138.11
146.0J147.1 '148. 1 149.0 150.01

83.2] 81.1
8 2 . 6 | 81.3

79.5
82.5

79. J
82.9

79.8
82.8

152.4J 153.5
166.7|168.1
123.21123.4
140.6J141.4
163.41164.3
102.3] 102.0
172.1)174.3
146.41149.6
1
132.51132.4

•

108.9 108.8 110.21
122.2 123.5 124.2]

UTILIZATION
1986

82.61 83.5
7 8 . e>] 78.4

1

126.8|12a\.6
131.0J 132. J
108*51108^6
129.31132-8
127.91131.3
88.21 91.1
149.51149.7
129.41129.9
j
107.11105.4
*
112.81110*5
120.61119.6

1985
U4

134.0 134.6 135.11
177.9 179.1 180.4]

144.%^

166.9]
101.7J
180.91
153.41
1

j

HU2

86.5
81.9
83.1

1

Note. Data for output are percentages of 1977 output as shown in the Federal Reserve's seasonally adjusted indexes of industrial production. Capacity is also expressed as a percentage of




1
1

1986
Q1

1977 actual output. Capacity utilization percentages are calculated as ratios of production to
capacity.

INDUSTRIAL MATERIALS
Table 3

Capacity Utilization
Monthly, seasonally adjusted, percent of capacity
1973 1 1975 1 1978 1 1982
High 1 LOH 1 -80 1 Low
Series

Industrial Materials
Durable goods materials
Metal materials

1
1
92.01
1
1
91.31
4
99.2)
1

106.04
95.7|

Raw steel
Aluminum

1
Nondurable poods materials

1
91.11
1

Textile, paper, and chemical materials
Pulp and paper materials
Chemical materials

92.8|
1
98.4|
92.51
1
I

94.61

Energy materials

1 High |
|
1
70.51 89.11 68.41
J
1
1
1
1
4
64.4| 8 9 . 8 | 60.91
1
I
1
67.11 93.61 45.71
1
4
1
66.41 98.91 3b. 11
73.01 97.41 5 8 . 8 |
1
1
4
1
1
I
66.71 88.11 70.61
4
1
1
64.8J 89.41 08.61
1
1
1
70.6]
97.3| 79.91
64. 4 J 87.91 63.31
1
1
I
1
1
1
86.9| 94.01 8 2 . 2 |

1

j

1

1

1967 1
-86 (
Avq. 4
1
82.31
I
1
79.11

1987
1986
JUH I J f l l 1 AOG 1 S&B | OCT 1 MOV J DEC I JAM 1 FEB
1

1
83.31
1
83.7|
t
91.61
80.8|
1
1
89.31

79.61
1
1
75.91
1
69.0|
1
70.21
69.81
1
I
83.51
J
84.21
1
93.81
80.24
I
1
84.31

1

1

1

77.81
1
80.31
87.0|
1

i

78.0

78.3

77.9

78.1 77.8

78.4

73.2

73.7

73.5

73.5

73.6

74.2

63.2

63.8

63.8

64.8

65.2

68.4

63.2
64.7

63.5
61.4

58.9
62.6

57.6
62.4

60.1

59.7
65.2

84.3

85.0

85.5

86.1

85.9

85.7

85.1

85-6

86.5

87.4

87.0

86.7

95.9
80.4

97.8
80,2

97.9
81.2

96.1
82.6

95.7
82.5

96.0
81.7

83.1

82.3

80.6

80.7

79.7

81.2

78.9| 78.9
I
I
74.31 74.1
I
66.71 65.4
57.9|
66.4|
I
I
87.3|
I
88.71
1
98.21
84.3|
I
4
81.14
4

78.9
74.1
66.3

54.8
70.1
87.2

87.3

88.6

88.9

98.2
84.8
81.7

81.9

Table 4
Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted
Series

Industrial Materials
Durable goods materials
Metal materials
Raw steel
Aluminum
Nondurable goods materials
Textile, paper and chemical materials
Pulp and paper materials
Chemical materials
Energy materials

1985

1986

Sj4

Q1

114.34114.5 113.3
4
1
121.11120.9 118,8
1
82.6| 79.0 75.1
1
68.6| 71.4 66.2
78.61 79.1 77.7
1
4
11J.9I115.7 11o.9
1
114.01116.2 117.0
1
124.81128.8 130.1
113.41115.3 115. 4
1
1 s
102.61102.2 100.6
I

1985
Q4

113.4 M 4 . 3 |
1
1
118.8 120. 1|
75.71
1
60.0 58.64
fa8. 1 70.3|
1
4
119.7
121.1|
120.4 122.11
73.1

135.04
117.7 120.14
4
I
98.6 93.1J

1986
Ci

1985 1986
Q3

Q2

4

4
79.61 79.4
4
76.21 75.6

143.61 144.2 144.7 145.3 145.84
1
4
4
I
159.01159.9 160.7 161. b 162.21
4
115.54115.0 114.5 114.0 113.4J 71.54 68.7
4
4
4
102.71 101.9 100.9 99.9 98.94 66.8| 70.1
114.71113.2 111.4 109.7 107.91 68.5| 69.9
1
1
4
1
4
4
138.6|139.Q 139.5 139.9 140.41
1
" 1
4
138.01138.4 138.8 139.2 139.61 82.74 83.9
1
4
136.54 137.3 138.1 138.9 139.71 91.4) 93.8
143.6|144.O 144.3 144.7 145.01 79.01 80.1
4
1
4
4
4
4
120.94 121.1 121.3 121.4 121.64 84.91 84.4

L

Q4

78.3 78.1 78.4
73.9

73.6

74.0

65.6

64.2

66-8

65.6
69.7

60.9
62.1

59.2
65.2

83.8

85.6

86.2

84.3

86.5

87.5

94.2
80.0

97.3

96.7

81.4

82.8

62.9 81.2 80.7

L

Explanatory Notes
Definition. This release contains estimates of output, capacity, and capacity utilization for the
nation's factories, mines, and electric and gas utilities. Output data are the Federal Reserve's
seasonally adjusted indexes of industrial production, which express output as percentages of
1977 output. The capacity estimates are expressed as percentages of 1977 output as well.
Capacity utilization percentages are calculated as ratios of production to capacity. The capacity indexes are based on a variety of data, including capacity data in physical units compiled
by trade associations, private and government surveys of capacity growth and utilization rates,
and estimates of capital stock growth. The concept of practical capacity is applied, which is
defined as the greatest level of output that a 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. Because of the
large and heterogeneous database, changes in utilization rates may be more meaningful In the
analysis of business conditions than any particular level of these rates.
Groupings. Estimates of capacity and industrial production for manufacturing industries are
aggregated to primary processing and advanced processing industries, to durable and nondurable
manufacturing industries, and to total manufacturing. The mining, manufacturing, and utilities
estimates aggregate to the total Index. Primary processing Includes textile mill products, paper
and products, industrial chemicals, petroleum products, rubber and plastics products, lumber
and products, primary metals, fabricated metal products, and stone, clay, and glass products.
Advanced processing includes foods, tobacco products, apparel products, printing and publishing, chemical products such as drugs and toiletries, leather and products, furniture and fixtures,
machinery, transportation equipment, Instruments, miscellaneous manufactures, and
government-owned-and-operated ordnance facilities. 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, as well as some
of the output of the advanced processing industries, mines, and utilities—such as iron ore, crude
oil, semiconductors, and electricity sold to Industry.




Perspective. The historical highs and lows in capacity utilization shown in the tables 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 beiow 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 exceeded 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 basic methodology used to estimate the series is discussed in Richard D. Raddock, "Revised Federal Reserve Rates of Capacity Utilization," Federal Reserve Bulletin, Vol.
71 (October 1985), pp. 754-66. Revised data for 1984-85 as well as historical utilization rates
since 1967 (1948 in the case of manufacturing) are included in the statistical supplement to the
September 1986 capacity utilization release. Copies may be obtained from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551
Rounding. Utilization rates are calculated from unrounded capacity and production indexes.
Aggregates are derived from unrounded detailed components.
. . . . — , ,»,.. H H .4 for 1987. Approximately 11 a.m. on January 20, February 17, March 16,
April 16, May 18, June 17, July 16, August 17, September 16, October 19, November 16, and
December 16.