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FEDERAL RESERVE statistical release
For immediate release
November 17, 1980

G.3 (402)

CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS
October 1980

Capacity utilization in manufacturing increased 1.1 percentage
points in October to 77.6 percent. The utilization rate for producers of
industrial materials was 77.9 percent in October, up 1.8 percentage
points from the September rate. Despite substantial gains since July, the
October operating rates for both manufacturing and materials were almost
10 percentage points below their last cyclical highs in 1979.
The utilization rate for the primary processing industries rose
1.9 percentage points in October to 76.5 percent, and the rate for the
advanced processing industries climbed 0.6 of a percentage point to
78.2 percent. Among the primary processing industries, the operating
rate for the iron and steel industry, which has increased more than 16
percentage points from its very low level in July, continued its rapid
rise in October. Large increases also occurred in utilization rates
for producers of nonferrous metals, fabricated metal products, chemicals,
rubber and plastics, textiles, and stone, clay, and glass. The operating
rate for the petroleum industry declined. Among the advanced processing
industries, capacity utilization for motor vehicles and parts producers
increased sharply in October for the second consecutive month. Sizable
increases also occurred in the operating rates for electrical machinery
producers for the aerospace and miscellaneous transportation equipment
industries.
Producers of durable goods materials utilized 72.1 percent of
their capacity in October, 2.4 percentage points above the September rate,
and the operating rate for nondurable goods materials rose 1.8 percentage
points to 84.1 percent. The utilization rate for energy materials producers
remained unchanged at 85.0 percent.




MANUFACTURING

PERCENT

INDUSTRIAL MATERIALS

100

ENERGY

TOTAL

80

60
100
NONDURABLE GOODS

PRIMARY PROCESSING

80
ADVANCED PROCESSING

60
1968

1971

1fi7<

1877

1980

1871

1974

1677

1980

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

Manufacturing
19731
L JJISHJ.

SERIES

88.01
1
1
93.8|
1
85.5|
1

HANUFACTUBING, TOTAL
PBIdARY FBOCESSING
ADVANCED PROCESSING

1979
III

J

153.7

HANUFACTOBING, TOTAL

148.3

ADVANCED PBCCBSSIHG

69.0

84.8

68.2

87.5

69.4

83.4
J
OUTPUT
1980
I?
I

153.41
1
1
162.5|
1
148.51
1

163.9

PRIflABY EROCESSING

1975
1S79
1QH 1 OCJa.

MONTHLY CAPACITY UTILIZATION
| 1980
DEC. 1 JAM.
FEB.
HAB.
1
84. 4
84.1| 83.9
83.5
82.8
1

NOV.

86.9
82.9

II

152.8

143.9

160.5

145.0

148.8

143.3

86.3|
1
82.8|

86.4
82.7

1
1 1979
Sill
III
1
140.8| 180.1
1
1
139.11 185.6
1
141. 7J 177.3

APB.

HAY

JUNE

JOLT

AOG.

SEP.

OCT.

80.3

77.6

75.7

74.9

75.4

76.5

77.6

83.8

82.6

80.5

75.8

72.7

70.9

72.3

74.6

76.5

82.2

95.2

80.1

78.6

77.4

77.1

77.1

77.6

78.2

1979
III

UTILIZATION
1980
I?
I

CAPACITY
1980
I
I
181.7| 183.3
1
1
187.1| 188.5
1
178.9| 180.5

IT

II
184.8
190.0
182.0

1
I
IIII
186.3|
1
1
191.51
1
183.5|
1

85.3
88.3
83.7

8.|
44
1
1
86.91
1
83.0|
1

83.4

II

III

77.9

75.6

85.1

76.3

72.6

82.5

78.7

77.2

Industrial Materials
HONTHLY CAPACITY UTILIZATION
1973J
HIGHI

SEBIES

1975
LOB

DURABLE GOODS HATEBIALS

86.2

84.8

83.9

68.6

85.4

85.1

67.2

98.3J

-ETA!. MATERIALS

NOV.

86.6

|
92.61 69.4
1
1
91.5|
63.6
1

HATEBIA1S, TOTAL

| 1980

1S79
OC1.

90.7

90.3
90.9

1
1
94.5|

NONDURABLE GOODS HATERIALS

1
95.1|

TEX., PAPER, ft CHER. HAT.

1
92.6|
99.4|
95. 5J
1
1
94.6|
1

TEXTILE MATERIALS
PAPER HATEBIALS
CHEHICAL HATBBIALS
ENERGY RATBBIALS

65.3

91. u

57.9
72.4
64.2

90.0
96.9
90.4

89.0
96.9
89. 8

84.8

85.5

86.1

OUTPUT

L_

1979
III

1980
_JL

IY

II

DEC.I

IIII
139.0|

155.0

140.6

131.11

117.1

100.6

86.8|

179.3

166.0

161.5|

187.5

171.9

165.0| 203.7

116.4
142.1
208.3

113.3| 137.9
141.9) 151.9
197.21 253.6

130.0

130.3|

156.51 156.3

158.6

156.3|

126.3

119.6|

176.8

179.2|

185.0

187.9|

122.7
146.8
227.7

123.8J
120.6
148.9| 146.1
231.8| 233.6

128.2

129.0J

1
1

1
1
NONDUBAB11 GOODS BATBBIALS
HIT.

1 ,
BOTE:

130.8

JUNE

JULY

AUG.

SEP.

OCT.

78.3

75.7

73.7

74.6

76.1

77.9
72.1

82.7

82.2

78.8

74.1

70.8

68.0

69.1

69.7

82.0

83.6

77.2

70.0

67.0

58.4

62.3

64.0

90.3

88.3

86.1

81.8

78.7

76.8

78.0

82.3

8*, 1

90.3

88.5

86.0

81.3

77.1

74.5

76.1

81.1

83.7

87.2
94.4
90.1

86.8
93.0
87.9

84.6
90.7
85.2

84.5
90.8
78.3

81.8
91.6
72.7

82.0
88.1
69.6

79.5
89.6
72.2

82.0
92.7
78.2

87.0

86.5

85.8

85.3

85.8

85.6

85.7

85.0

CAPACITY

1980
I

If

185.7|

140.3

140.6J

195.6

197.6|

1

182.8

184.3

1 5 8
8 . |

187.2

188.6

100
9.|

140.7

140.8

140.91

199.8

202.0

204.31

211.0

2 3 7
1 . |

86.0
90.0
90.4

I

1

90.8

1

138.4| 138.8
153.3| 154.7
256.8| 260.4

139.2
156.0
264.6

196
3.|
157.4|
268.7|

151.8

152.61

1
1
i

87.2

1
1

1

89.0
96.7
89.8

1
I
151.1

1

1980
I

iy

iH

III

1

1

205.8J 208.3

150.3|

1979
III

1
1

I
I

149.2

1
1
IIII

85.0

UTILIZATION

1

I

1
1
i

II

1
1

1

1
|
ENERGY HATBBIALS

HAY

82.1

184.3

1

1
TEXTILE HATBBIALS
PAPER HAT1BIALS
CHEHICAL HATEBIALS

APB.

84.7

181.2|

1
1

1
TEX., PAP1B, 6 CHBH.

HAR.

85.6

179.8

I
1

1
HETAL HAJEBIALS

FEB.

1

145.1

156.9

DURABLE GOODS HATBBIALS

III

1

1
HATEBIALS, TOTAL

JAN.

1
86.11
86.1
1
1
83.6|
83.6
1
84.8| 84.1
1
1
90.8|
SO. 9
1
91.4|
91.2
1
89.3|
86.6
97.6|
96.0
90.5|
91.2
1
1
86.0|
86.2
1
1
| 1979

85.9

74.8

05.5

73. •»

82.8

74.6

69.0

83.2

71.4

61.6

9 . | 89.7
06
|
9.
00
I
89.4|
86.9
97.1| 94.5
89.7
90.2|
1

82.2

79.0

81.5

77.2

83.7
91.0
78.7

81.2
90.1
73.3

85.91
1

85.6

85.4

86.3|

I
1
84.11
1
85.1|
1

91.2|

86.6

ESTIHATBS OP ACTUAL OUTPUT A M D CAPACITY OUTPUT ABB BOTH BXPBBSSED AS PBBCBITAGBS CF 1967 ACTUAL OUtFOT. BSTIHAT1S OF
CAPACITY UTILIZATION III PEBCEIT A B B CALCULATED AS RATIOS OF (1) THE F E D E R A L EBSBBVB'S SEASONALLY ADJOSTBD IIDBIBS OF INDUST R I A L P B O D U C T I O N TO (2) TUB COBBBSPONDING INDEXES OF C A P A C I T Y . I N D U S T R I A L HATBBIALS IBB ITBHS BOTH MODICBD AND OSBD AS INPUTS BY H A N U F A C T U R I N G PLAHTS, HIKES AND UTILITIES; I N D U S T R I A L H A T B R I A L S C07BR H A N Y OF THE ITBflS R B P B B S B N T B D IN TIB FBIHARY
PROCESSING G R O U P I N G OF H A N U F A C T U B I N G AS W E L L AS SORB OF THE OUTPUT OF H I N h l S AND UTILITIES — SUCH AS IBON OBB, C10DB OIL, ABD
ELECTRICITY SOLD TC I N D U S T R Y .
THE 1973 HIGHS AND 1975 LOWS IN CAPACITY UTILIZATION, SHOWN IN THE TABLES ABOfB, ABB SPECIFIC TO BACH SBBIBS ABD RAT OCCOV IN
D I F F E R E N T HONTHS.
I N D U S T R I A L P L A N T S U S U A L L Y O P E R A T E AT C A P A C I T Y UTILIZATION B A T E S THAT ABE NBLL DBLOI 100 PBBCENT; NONE OF
THE B B O A C A G G B E G A T E SEBIES HAS E V E R I N D I C A T E D A 100 P E R C E N T USB OF CAPACITY. CAPACITY U T I L I B A T I O N BATES A V E R A G E D ABOUT 83
P E R C E N T FOR H A N f J F A C T U H I N G FBOH 1955 T H R O U G H 1979, AND A B O U T 85 PERCENT FOR I N D D S T B 1 A L H A T B N I A L S FOB 1967 T H B O O G H 1979.
IN
H 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 P E B C B N T H A V E B E E N E X C E B C B D O N L Y IN NARTIflB. THB PBAK R A T E S OF UTIL I Z A T I O N IN 1973 H E R E A S S O C I A T E D W I T H S I G N I F I C A N T U P H R R I 5 P « " S S O R K ON PRICES.
THE HETHCDOLOGY AND THB U B B I E S ARE D E S C R I B E D IN F.ME.flAlt R.E.SJUUIflBlSJJfiE.2Qf CAPACITY AJUl CAf Ay. HI 8T1LIIATIQN. BITI5BI) D A T A
ABB F O U N D IN - C A P A C I T Y U T I L I Z A T I O N : H A N U F A C T U H I NO AND flATF.HlALS, J A N U A B T 1967— DICBHBBB 1978." BOTH "OBI. ICATI-, *" RAT PI OPT A I N I D FBOH P U B L I C A T I O N S S E R V I C E S , B O A R D OF G O V E R N O R S OP THE F E D E R A L R E S B H V E SISflH. NASH1HGTON. D.C.