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FEDERAL RESERVE statistical release
G.3 (402)

For immediate release
November 16, 1981

CAPACITY UTILIZATION: MANUFACTURING A2® MATERIALS
October 1981

Capacity utilization in manufacturing fell 1.5 percentage paints in
October, following a revised 1.2 percentage point drop in September and a decline
of 0.2 of a percentage point in August. At 76.9 percent, the October index for
manufacturing is 2.0 percentage points above its July 1980 low.
Producers of industrial materials operated at 78.2 percent of capacity
in October, down 2.0 percentage points from their September rate. The operating
rate for materials producers had declined 1.4 percentage points (revised) in
September and 0.3 of a percentage point i i August. The materials utilization rate
i
in October was 4.4 percentage points above its recent low in July 1980.
Within manufacturing, sizable declines in utilization rates were widespread again in October. The rate for the primary processing industries fell 2.1
percentage points to 76.1 percent, and the advanced processing industries rate
decreased 1*0 percentage point to 77.4 percent. For the second consecutive month,
capacity utilization dropped sharply for producers of iron and steel. The rate for
motor vehicles and parts producers also declined quite sharply, and approached its
August 1980 low.
The utilization rate for producers of durable goods materials dropped 2*6
percentage points to 74.8 percent, reflecting large declines in the production of
aluminum, raw steel, and parts for consumer durable goods and for equipment*
Producers of nondurable goods materials utilised 81«3 percent of their capacity in
October™a decline of 1.5 percentage points from September, as operating rates
decreased for producers of textile* paper, and chemical materials and containers.
The operating rate for energy materials production declined from 84.1 percent in
September to 83.3 percent in October.




INDUSTRIAL MATERIALS

MANUFACTURING

r~

TOTAL

V
|

—

~ M

\T^

PRIMARY PROCESSING

I U
W

ADVANCED
PROCESSING

_

\
V

1

!

1969

! i

60 L I L
1972

1975

1978

1981

1972

1975

1978

1981

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

Manufacturing
HOiTHLI CAPACITY UIILIiATIOM
SBfilES

19731 1975
: tflGHi

J

M0*.

69.0

78.2

79.3

93.81

68.2

77.6

85.51

MANUFACTURING, TOTAL

t980
OCI*i

69. 4 1 78.3

88.01

1
1

PRIHAfiY PROCESSING
ADVANCED PROCESSING
j
.

JAM.

PBB.

BAB.

APB

HAY

.JUNE

JOJJ

AUG..

SEP.

60.0

79.8

79.6

79.6

80.0

79.6

79.8

79*6

78.4

.76.9

79.5

79.81
1
1
80.9|

81.5

81.5

80.8

80.7

80.6

79.5

80.1

79.9

78.2

76. 1

7S.0

79-21

79.2

79.0

79.2

79.4

79-8

79.7

79.8

79.4

78-4

77. 4

fiEC^l

1980
, III

OUTPUT
1981
IV
I

141^5

148.61 151.3

152.4

152.51 186. 4

139.7

152.71 157.5

156.5

142.3

146.2{ 148.1

150.2

1
IIII

1980
III

CAPACITY
1981
IV
I

J
1980

II

J
MANUFACTURING, TOTAL
PtIMARY

PROCESSING

ADVANCED PROCESSING

IIII

1
" 1

75.9

UTILIZATION
1961
IV
I
1
79.1| 79.9
1
1
79.31 81.3
•
78.81 79.1

190. 9

155.6t 191.2

187.91 189.4
1
1
192.51 193.8

195.0

196.31

73.1

150.71 183.8

185.51 187.1

188. 7

190.4J

77.4

APR.

HAY
81.2

81.. 3

81.9

Ill
79. 3

80.3

79. 4

79.6

79. 2

81.6

JUKE

61.1

II
79.8

80.2

78.2
74.8

Industrial Materials
INDUSTRIAL
SERIES
L

19731
HIGBi

• • • ' • •

MATERIALS, TOTAL

1980
1975
LOM JL _ Q C 2 A

1

92-6J
i
91.5|

69,4

78.4

MATERIALS

MONTHLY CAPACITY UTILIZATION
I 1961
NOV.
DEC.i JAN^
PE2Mil.
I
81.4| 82.1
82.3
82.1
80.5
i
77.1|

78,4

73.5

79-2

76.8

79.2

78.9

79.2

79.5

77.4

61.9

83.2

83.9

79.9

80.3

78-7

79.5

83.0

78.8

85.3

80.3|
1
1
87.2|

87.3

86.8

85.4

85.9

85.6

84.3

8 3.. 9

83.2

62.6

81.3

84.S

84.9

67.1|

66.7

86.3

85.0

85.5

85-4

83.5

63.2

82.4

82.0

80.5

S2.6I
99.4|
95.5|

81.4
57.9
72.4 I 94.1
82.9
64.2

82.4
94.3
83.3

80.2|
95.0(
86 c a i

82.0
94.5
86.0

82.2
94.5
85-3

81.5
95.3
63.4

81.9
94.9
84*1

81.7
93.9
84.3

80.5
93.0
82.. 0

82*0
92.9
81.2

82.3
94.0
79.9

81.6
S5.6
79.1

94.6|

JfiABLE GOODS MATERIALS

84.8

82.7

84.4

85.8

85.2

79.9

79.8

63.7

86.2

65.3

64.1

CAPACITY
1981
IV
I

II

153-4

84.6| 84.9
1
J
i 1980
III
iiil1
154.4| 185.1

63.6

73.3

76.6

98.31
I

68.6

70.5

61.4

NONDOfiABLE GOODS MATERIALS

94.51

67.2

I 85.1

IEX., PAPEB, & CHEM. HAT.

95. 11

65.3

METAL MATERIALS

TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS
ENERGI MATERIALS

L
1980
III
MATERIALS, TOTAL

139.2
131.4

DURABLE GOODS 8ATESIALS

OOTPOT
1981
I
1
149.4| 154.2
1
1
144.31 150-9
IV

II

152.3

i
152.8J 189.5

112.6

114. 1( 141.2

NONDURABLE GOODS MATERIALS

163.2

109.4| 117.5
1
J
176.3| 179-2

176.4

(
175-8| 203,-4

IEX. # PAPE.fi, & CHEM. KAT-

167.0

183.7| 186.7

165.9

182.9i 212.6

113.2
143.6
200.0

113.7J
149.71
228.21
j
1
128.21

114.8
151.4
232.7

114.5 115.61 139.4
151.0' 152.4j 157.2
231.6 224.91 26 7-1

130.9

125.1

METAL MATERIALS

87.3
.

1

TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS
ENERGY MATERIALS
NOTE:

A0G..

128.4

j
111

UTILIZATION
1981
IV
1
\
82.2
80.11
1

186.4J 187.6
i
i
190.6| 191.8

188.9

190.11

192*9

194.OJ

69.3

75.71

141.31 141.5

141.7

141.9(

61.6

77. 41

1
1

75.2

JI
81,2

81.2

78.7

79 .0

76.8

83.0

73.6

80.4

1
209*2

I
211.2j

80.2

1
85»Sj

66-5

85.. 3

63.3

214.9J 217.1

219.4

221.7J

78.5

85.5i

86.0

84.. 8

62.5

139.7{ 140.1
158.51 159.7
270,5] 274. 1

140.6
160.. 7
277.5

81-2
91.3
74.9

81. 4J
94.51
84.34
J
J

G1.9
94.6
84.9

81.4
93.9
83.5

81.9
94.2
80.0

152.8J 153.5
I.

154.2

141.0J
161.91
28t,0|
1
1
155.01

85.3

81.1

85.2

205.31 207.3

£

•

i

1
132.0| 152-3

1 1980

83.3

_i

84.4
. . _i._
..

ESTIMATES OF ACTUAL OUTPUT AND CAPACITY OUTPUT ARE BOTH EXPRESSED AS PEBCENTAGES OF 1967 ACTUAL OUTPUT. ESTIMATES Of
CAPACITY U1ILIZATIOH IN PERCENT ABE CALCULATED AS EA1IOS OF £1) THE FEDEJRAL RESERVE'S SEASONALLY ADJUSTED INDEXES OF INDOSihlAL PRODUCTION TO (2) THE CORRESPONDING INDEXES OF CAPACITY. INDUSTRIAL MATERIALS ARE ITEMS BOTH 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 WELL AS SOME OF THE OUTPUT OF MINES AND UTILITIES — SUCK AS IRON ORE, CRUDE OIL, ASB
ELECTRICITY SOLD TO INDUSTRY.
THE 1973 HIGHS AND 1975 LOWS IN CAPACITY UTILIZATION, SHOHH IN THE TABLES ABOVE, AR£ SPECIFIC TO EACH SERIES AND MAY OCCUR IS
DIFFERENT MONTHS. INDUSTRIAL PLANTS USUALLY OPEEATE AT CAPACITY UTILIZATION SATES THAT ABE HELL BELOW 100 PSBCENl^ NONE OF
1HE BROAD AGGREGATE SERIES HAS EVER INDICATED A 100 PERCENT USE OF CAPACITY. CAPACI1Y UTILIZATION RATES AVERAGED ABOUT 83
PERCENT FOR MANUFACTURING FROfl 1S55 THROUGH 1979, AND ABOUT 85 PFflCENT FOR INDUSTRIAL MATERIALS FOR 1967 THROUGH 1979- IN
MANUFACTURING AS A WHOLE, UTILIZATION RAXES AS HIGH AS 90 PERCENT HAVE BEEN EXCEEDED ONLY IN KAfiTIHE. THE PEAX RATES OF UTILIZATION IN 1973 HERE ASSOCIATED WI1H SIGNIFICANT UPHAfiD PRESSURE ON PRICES.
THE METHODOLOGY AND THE SERIES ARE DESCRIBED IN FEDERAL RESERVE MEASURES OF CAPACIIX ANfi £ M £ C I T Y SIlkiSMSSM.*
REVISED DATA
ARE FOUND IN "CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS, JANUARY 1967—DECEMBER 1978-» BOTH PUBLICATIONS KAY BE OBTAINED FROM PUBLICATIONS SERVICES, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C, 20551