Full text of G.3 Capacity Utilization, Manufacturing, Mining, Utilities and Industrial Materials : March 17, 1978

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FEDERAL

RESERVE

statistical

release
For Immediate Release
March 17, 1978

CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS
February 1978

Capacity utilization in manufacturing edged up slightly in February,
following the drop of more than 1 percentage point in January. Scattered
secondary effects of the coal strike and continuing bad weather in some
regions were factors holding down manufacturing operating rates last montho
Capacity utilization in the materials sector was about unchanged
from the reduced January level. At an estimated 80.9 per cent, operating
rates of materials producers are at their lowest levels since February of
last year.
The manufacturing operating rate remained almost flat throughout the
second half of 1977 near its average of 83 per cent since 1948. The operating
rate in the materials sector declined on balance during the second half of
last year and has fallen below its historical average.

MANUFACTURING

PER CENT

INDUSTRIAL MATERIALS

100

TOTAL

ENERGY

—

80
TOTAL

I

I

I

I

60

100

NONDURABLE GOODS

PRIMARY PROCESSING

80
ADVANCED PROCESSING


http://fraser.stlouisfed.org/
1969
1966
Federal Reserve Bank of St. Louis

DURABLE GOODS

I

60
1972

1975

1978

1969

I
1972

I

I

I

I

1975

I
1978

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

19731

1

1977

1975

HlGHl
MANUFACTURING *

PRIMARY

TOTAL

PROCESSING

ADVANCED PROCESSING

1
66.01
1
1
93.6|
1
85.4|

OCT.
69.6

60.9

62.1

82.3

b2.8

63. O

68.1

82.0

84.0

84.4

85.5

85.5

70.4

80.3

81.0

81.1

61.4

81.6

OUTPUT

I

IV
MANUFACTURING,

TOTAL

I

1977

1976

11

111

|
1VI

82.9

85.3

85.1

84.4

84.7

64.7

1
84.4|

83.5

83.3

82.0

81.8

82.0

81.8

81.9

82.21

80.9

61.2

1976

167.1

166.71

80.6

171.6

173.5

175.11

162.2

163.8

165.31

165.6

170.2
160.7

138.8

140.1 146.3

147.3

148.21 166.6

127.2

129.3

134.2

135.61 159.6

111

1
1
PRIMARY

PROCESSING

132.0

1977

I

IV

61.2

II
82.7

111
83.0

IV
82.9

1
1

1
ADVANCED PROCESSING

UTILIZATION

1
1
1VI

1977

164. O

139.91 162.6

82.0

82.9

11

138.7

FE$M

81.8

82.9

1

133.1 136.9

JANn

62.9

83.1

IV

131.2

DF.C.I

1
83.01

CAPACITY
1976

1978

NfiV.

62.2

62.3

85.1

84.9

84.6

79.7

60.5

81.4

81.9

82.0

1
1

Industrial Materials
MONTHLY C A P A C I T Y UTILIZATION

19731

SERIES

HlGHl
MATERIALS,

TOTAL

DURABLE GOODS M A T E R I A L S
BASIC METAL

NONDURABLE

MATERIALS

GCODS M A T E R I A L S

TEX., PAPER,

L CHEM. M A T .

TEXTILE MATERIALS
PAPER M A T E R I A L S

1
93.11
1
1
92.51
1
97.71
1
1
94.61
1
94.51
|
94. 4|
100.51

CHEMICAL MATERIALS

93.8|
1
I
94.61
1

ENERGY M A T E R I A L S

1975

LOW

1

1977

FEB.

MAR.

JULY

81. 6

62.1

82.7

63. 0

82.9

82.0

82.0

82.4

62.3

64.3

76.0

77.6

78.7

79.4

79.9

80.0

76.9

78.9

79.5

79.4

66.1

72.9

78.4

79.3

81.2

80.2

77.6

74.8

73.4

75.6

74.2

67.8

85.7

87.0

87.0

87.7

87.0

86.4

86.7

85.9

85.8

86.1

65.5

83.8

85.9

66.0

66.7

06.1

65.1

85.3

84.7

64.9

64.3

58.0

77.7

79.9

78.8

78.8

76.7

77.4

78.7

60.3

82.9

82.4

71.8

69.6

89.7

88.3

90.7

89.2

89.0

89.7

89.1

88.3

86.7

64.7

64.0

66.6

67.5

87.9

87.6

86.4

85.9

84.8

84.6

84.4

82.7

83.7

84.4

63.9

64.5

85.6

66.3

83.6

84.9

85.2

84.4

1V77

1
I
1VI
1

CAPACITY
1976

1977

1

III

165.5

166.6

167.8

Io6.9|

167.8

169.0

170.3

171.6

172.61

109.4

109.4| 144.4

144.6

145.1

145.3

145.51

154.4

154.81 174.1

175.6

177.2

178.8

1*0.4|

163.6

185.4

187.1

168.91

141.4
146.9
216.2

141.9 142.5
150.1 151.3
218.7 221.2

143.01
152.51
223.61

11

111

TOTAL

131.9

133.1

137.7

138.1

138.81 164.3

GOODS M A T E R I A L S

12b.4

129.2 135.1

136.0

137.71

107.4

108.6

116.4

146.9

149.5 154.6

151.4

153.9 159.9

159.2

159.21 182.0

112.1
130.2
177.3

111.3 110.9
131.7 134.3
161.6 191.6

112.3
135.1
189.5

118.21 140.6
132.01 147.9
186.21 213.7

GOODS

MATERIALS

PAPER,

L CHEM.

MAT.

122.0

122.0 122.6

123.4

121.71

1

75.5

84.2

64.6

83.4

83.7

79.9
85.8
83.7

80.1

78.7

UTILIZATION
1976

IV
80.3

1977

I
60.4

11

111

62.6

62.3

IV
82.2

76.5

76.5

79.4

79.2

79.7

74.4

75*0

80.2

75.3

75.2

64.4

85.1

67.2

86.3

85.6

63.2

63.6

86.3

65.1

84.3

79.7

76.7

76.1

78.8

82.6

88.1

86.4

89.5

89.3

86.6

83.0

84.0

87.7

85.7

64.2

84.8

64.5

64.6

85.0

63.5

1
1

1
1
ENERGY M A T E R I A L S

79.6

1

1
TEXTILE MATERIALS
PAPER M A T E R I A L S
CHEMICAL M A T E R I A L S

79.5

1

1
TEX.,

80.9

1
1

1
1
NONDURABLE

81.0

1

1
BASIC M E T A L M A T E R I A L S

1
81.6|
|
|
80.2|
1
75.7|
1
1
65.4|
1
83.6|
1
62.61
84.61
83.51
1
1
81.01
I

1
1

1
1
DURABLE

1
1
IVI
1

11

IV

1

1978

AUG.

80.2

IV
MATERIALS,

JUNE

69.7

OUTPUT
1976

MAY

APR.

143.9

144.3

144.7

145.2

145.71

1

E S T I M A T E S OF A C T U A L OUTPUT AND CAPACITY OUTPUT ARE BOTH EXPRESSED AS PERCENTAGES OF 1967 ACTUAL OUTPUT. ESTIMATES OF
C A P A C I T Y UTILIZATION IN PERCENT ARt CALCULATED AS RATIOS OF (1) THE FEDERAL RESERVE'S SEASONALLY ADJUSTED INDEXES OF INDUST R I A L PRODUCTION TO (2) THE CORRESPONDING INDEXES OF CAPACITY.
INDUSTRIAL M A T E R I A L S ARE ITEMS 6OTH 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 W E L L AS SOME OF THE OUTPUT OF MINES AND UTILITIES — SUCH AS IRON ORE, CRUDE OIL, AND
E L E C T R I C I T Y SOLO TO INDUSTRY.
THE 1973 HIGHS ANO 1975 LOWS IN CAPACITY UTILIZATION, SHOWN IN THE TABLES ABOVE. ARE SPECIFIC TO EACH SERIES AND MAY OCCUR IN
D I F F E R E N T MONTHS. INDUSTRIAL PLANTS USUALLY OPERATE AT C A P A C I T Y UTILIZATION RATES THAT ARE WELL BELOW 1OO PERCENT; NONE OF
THE B R O A b AGGREGATE SERIES HAS EVER INDICATED A 100 PERCENT USE OF CAPACITY. CAPACITY UTILIZATION RATES AVERAGED ABOUT 83
P E R C E N T FOR MANUFACTURING FROM 1955 THROUGH 1977, AND ABOUT 65 PERCENT FOR INDUSTRIAL MATERIALS FOR 1967 THROUGH 1977. 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 PERCENT HAVE BEEN EXCEEDED ONLY IN WARTIME. THE PEAK RATES OF UTIL I Z A T I O N IN 1973 WERE ASSOCIATED WITH SIGNIFICANT U P W A R D PRESSURE ON PRICES.
THE C A P A C I T Y UTILIZATION ESTIMATES ARE DESCRIBED, AND HISTORICAL D A T A ARE PROVIDED, IN FEDERAL RESERVE MEASURES Q£ CAPACITY
Attfc CAPACITY UT1LI7AT1HN. THIS PUBLICATION MAY BE OBTAINED FROM PUBLICATION SERVICES, BOARD OF GOVERNORS OF THE FEDERAL RES E R V E SYSTEM, WASHINGTON, O.C. 20551. THE PRICE IS $1.75 PER COPY; FOR TEN OR MORE, $1.50 EACH.