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FEDERAL

RESERVE

statistical

release

For immediate release
March 19, 1979

G-3

CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS
February 1979

Capacity utilization in manufacturing in February was unchanged
from the 86.0 per cent in January, when it declined 0.3 percentage point.
The utilization rate for advanced processing industries in February was
unchanged at 84.6 per cent, while the rate for primary processing industries
edged down 0.1 percentage point to 88.6 per cent. The operating rate for
primary processing producers was lower in January and February than in the
preceding two months largely because of a lower level of steel production.
Industrial materials capacity utilization edged up 0.1 percentage
point in February to 87.6 per cent, but remained below the December level
of 88.0 per centr Capacity utilization for both durable and nondurable
goods materials rose by 0.2 percentage point in February, while the rate
for energy materials dropped by 0.4 percentage point—largely because of
a further decline in coal production.

MANUFACTURING

PER CENT

INDUSTRIAL MATERIALS

100

TOTAL

80
TOTAL

I

60
~] 100

I

NONDURABLE GOODS

PRIMARY PROCESSING

80

DURABLE GOODS

60
1067

1970




1073

1076

1979

I
1970

I

I

I

1973

I

I

I

1976

1979

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

I
I

MANUFACTURING, TOTAL

19731
H1GHI
I

1975
LOW

1978
FEB.

88.01

6.
9 6 81.9

1

APR.

MAY

JUNE

JULY

AU£.a

SEE*

OCT.

NOV.

O.E.CAj
I

JftN.»

EESjL

82.7

83.7

83.9

84.3

84.7

85.0

85.3

85.5

85.8

R6.3|

«6.0

86.0

1
1

PRIMARY PROCESSING

93.61

1
1

85.41

88. T
|
84.5| 84.6

89.41

68.1

83.6

84.1

85.7

86.2

87.1

87.3

87.7

88.3

88.6

89.0

70.4

80.8

82.0

82,7

82.5

82.8

83.4

83.5

83.6

8?. 8

84.0

1977
XV

UTILIZATION
1978
1
1
1

Lll

82.9

82.1

84.0

85.0

1

ADVANCED PROCESSING

1979

MAH.

88.6
84.6

1
OUTPUT

1977
IV

1978
I

II

1
III

139.9

139.8 144.4

147.7

PRIMARY PROCESSING

148.2

148.2 154.1

158.2

ADVANCED PROCESSING

135.6

135.4 139.3

142.1

MANUFACTURING, TOTAL

CAPACITY

1
IVI

1977
IV

150.6| 168.7
1
1
162.01 175.1
1
144.51 165.3
1

1978
I

1
1

II, - Ill—

172.0

173.7

176.8 178.5

180.2

166.9

170.2

170.3

168.5

jy |

1
175.41
1
1
181.91
1
171.81
1

i¥
85.9

84.6

83.8

86.3

87*8

89.0

82.0

81.1

82.7

83.5

84.1

IV^WVRw^VIGM ^^WVM^Mj M^^^F
MONTHLY CAPACITY UTILIZATION
SERIES
MATERIALS. TOTAL
DURABLE GOODS MATERIALS
BASIC METAL MATERIALS
HONOURABLE GOODS
TEX., PAPER*

MATERIALS

& CHEN. MAT.

TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS
ENERGY MATERIALS

19731 1975
HIGHl
LOW
»
93.11 69.7
1
1
92.51 64.3
1
97.7| 66.1
1
I
94.61
67.8
1
94.51 65.5
1
94.4| 58.0
100.51 71.8
93.81 64.7
1
1
94.61 .82.7

1

1978

FEB. MAR.

MAY

JUNE

JULY

AUG.

SEP.

OCT.

NOV.

DEC,|

84.0

84.5

85.1

85.7

85.9

86.3

87.1

87.6

88.01

81.9

DURABLE GOODS MATERIALS
BASIC METAL

MATERIALS

78.7

79.4

76.1

75.7

80.0

86.9

87.7

88.2

88.6

81.6

82.1

85.3

86.1

87.0

87.3

88.31

83.1

85.6

86.4

87.4

87.9

89.31

88.7

87.5

87.2

87.8

88.2

89.0

88.31

82.8

87.7

87.9

86.5

1
1

i

88.4

88.6

87.1

87.2

1

85.3

86.5

86.5

86.9

87.0

86.5

B5.5

86.7

86.9

87.7

86.81

80.7

80.1

81.0
90.2
87.2

81.0
90.5
87.7

81.7
90.2
87.8

81.1
86.9
87.8

80.2
84.4
87.2

81.9
88.2
87.6

81.8
87.7
88.1

82.9
87.7
89.0

81.91
86.31
88.3|

84.0

84.7

86.1

86.3

85.6

84.8

86.0

86.2

86.5(

1977
IV

UTILIZATION
1978
I
11

82.2

81.7

84.5

86.0

87.6

79.7

79.3

82.2

85.3

87.5

75.2

75.8

80.4

85.1

88.2

85.9

86.7

88.5

87.5

88.5

1

89.0
85.7

89.5
8T.4

81.6
84.8
89.2

1
1

80.0

79.7

1
1

1978

I

II

III

IVI
1

138.9

139.2

145.1

148.7

137.7

137.9

144.0

150.4

152.61
1
1
155.31
1
129.51
1
1
166.8)
1
172.11
1
119.41
136.9J
209.51
1
1
128.51

117.5

124.6

HONOURABLE GOODS MATERIALS

155.0

158.0

163.2

163.2

TEX., PAPER* £ CHEM. MAT.

159.5

163.1

167.7

168.4

117.9
132.3
188.9

115.3
136.5
194.9

117.1
139.7
201.4

117.3
134.8
204.4

121.9

119.1

125.5

127.0

\

NOTE:

84.5

80.8

80.4

110.5

ENERGY MATERIALS

87.6

1

109.4

TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS

FEB. m

87.5

1
1

IV

MATERIALS* TOTAL

1979
JAM*

1
81.3

OUTPUT
1977

APR.

CAPACITY
1977
IV

1978

j

I
I

168.9

170.4

171.7

172.8

174.0

175.2

176.3

11
1

173.0

145.5

145.8

146.1

146.5

180.4

182.3

184.4

186.5

188.9

190.8

193.1

195.4

143.0
152.5
223.6

143.5
153.6

144.7
155.8

226.6

144.1
154.8
230.1

233.5

145.7

147.2

147.8

148.4

1
1
IVJ

174.21
1
1
177.41
1
146.81
1
1
188.51
1
197.51
1
145.21
156.91
236.81
1
1
148.91
1

85,5

Ml

85.1

iy

84.5

85.5

86.8

86.2

87.2

82.4
86.7
84.5

80.3
88.9
86.0

81.2
90.3
87.5

81.0
87.5

82.2
87.2
88.5

83.7

80.9

84.9

85.6

86.3

86.5

ESTIMATES OF ACTUAL OUTPUT AND C A P A C I T Y 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 ACTUAL OUTPUT. E S T I M A T E S OF
CAPACITY UTILIZATION IN PERCENT ARE CALCULATED AS R A T I O S OF (II THE FEDERAL RESERVE'S S E A S O N A L L Y ADJUSTED INDEXES OF INDUST R I A L PRODUCTION TO C 2 » THE CORRESPONDING INDEXES OF CAPACITY.
I N D U S T R I A L M A T E R I A L S ARE ITEMS BOTH PRODUCED AND USED AS INPUTS BY MANUFACTURING PLANTS, M I N E S AND U T I L I T I E S ; I N D U S T R I A L M A T E R I A L S COVER M A N Y OF THE ITEMS REPRESENTED IN THE P R I M A R Y
PROCESSING GROUPING OF M A N U F A C T U R I N G AS WELL AS SOME OF THE OUTPUT OF M I N E S A N D U T I L I T I E S — SUCH AS IRON ORE, CRUDE OIL, 4NO
ELECTRICITY SOLO TO INDUSTRY.
THE 1973 HIGHS AND 1975 LOWS 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 A B O V E * ARE SPECIFIC TO EACH S E R I E S AND MAY OCCUR IN
DIFFERENT MONTHS. INDUSTRIAL PLANTS USUALLY O P E R A T E 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 ARE W E L L BELOW 100 PERCENT; NONE OF
THE BROAD AGGREGATE SERIES HAS EVER INDICATED A 100 PERCENT USE OF C A P A C I T Y . C A P A C I T Y U T I L I Z A T I O N RATES A V E R A G E D ABOUT 83
PERCENT FOR MANUFACTURING FROM 1955 THROUGH 1977, AND ABOUT 85 P E R C E N T FOR INDUSTRIAL M A T E R I A L S FOR 1967 THROUGH 1977. IN
M A N U F A C T U R I N G AS A WHOLE. U T I L I Z A T I O N RATES AS HIGH AS 90 PERCENT HAVE B E E N E X C E E D E D ONLY IN W A R T I M E . THE PEAK RATES OF UTIL I Z A T I O N IN 1973 W E R E ASSOCIATED WITH S I G N I F I C A N T U P W A R D P R E S S U R E ON PRICES.
THE CAPACITY U T I L I Z A T I O N E S T I M A T E S ARE DESCRIBED. AND H I S T O R I C A L DATA ARE PROVIDED, IN E£D£fiAL RESERVE HEASUBES Of. CAEAtll*
AMD CAPACITY UTILIZATION. THIS PUBLICATION MAY BE O B T A I N E D FROM P U B L I C A T I O N S E R V I C E S , BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM* WASHINGTON. D.C. 20551. THE PRICE IS $1.75 PER COPY; FOR TEN OR MORE, $1.50 EACH.