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FEDERAL RESERVE statistical release
For Immediate release
G.3 (402)
October 17, 1983
CAPACITY UTILIZATION
Manufacturing, Mining, Utilities, and industrial Materials
Capacity utilization in manufacturing, mining, and utilities
rose 1.0 percentage point in September to 78.1 percent, following an
advance of 0.8 percentage point in August. The operating rate for
manufacturing increased 1.3 percentage points in September to 78.4 percent,
its highest level in two years. At 70.9 percent in September, the mining
industry's utilization rate remains about unchanged from its level in
late 1982^ The operating rate for utilities decreased in September from
an August rate that reflected an unusually heavy demand for air conditioning.
Producers of industrial materials utilized 78.4 percent of capacity,
up 1.0 percentage point from the rate in August.
Within manufacturing, gains in operating rates again were
widespread. In September, the operating rate for the motor vehicles
and parts industry rose 2.1 percentage points to 77.8 percent, and the
rate for iron and steel increased 1 1/2 percentage points to about 63 1/2
percent. These two industries — which have been especially hard hit in
recent years and in which capacity has been shrinking — have posted
especially large cumulative gains in operating rates this year. In
three nondurable manufacturing industries — textiles, paper, and
rubber and plastics -~ operating rates were above 90 percent in September.
On the other hand, the aerospace and miscellaneous transportation equipment
industry operated at only 68.6 percent of capacity in September — down a
little from late 1982 — largely because of continued weakness in commercial
aircraft and railroad equipment production.
Operating rates increased 1.4 percentage points in September
for producers of both durable and nondurable goods materials, while the
operating rate for producers of energy materials declined 0.9 percentage
point due to reductions in coal production and electricity generation.
Capacity Utilization: Summary
Percent of capacity, seasonally adjusted
Series
1973
HIGH
1975
LQ8
1978
-80
HIGH
1982
LOB
1967
-82
AVEI.
JOKE
1983
I JULI I ADG
1 SEP
88.4
71. 1
87.3
69.6
82.4.
74.8
76.3
77.1
78.1
Manufacturing
Durable
Nondurable
87.9
87.9
89.. 1
69.0
67.6
71.0
87.5
89.4
87.2
68.8
64.8
73.8
81.8.
80.5.
83.9.
74.9
71.8
78.7
76.3
73.6
79.7
77.1
74.5
80.5
78.4
76.0
81.3
Mining
Utilities
91.8
9*. 9
86.0
82.0
90.4
86.8
69.6
79.0
86.5.
88.6.
68.1
80.8
69.5
83.6
70.2
84.3
70.9
83.1
92.6
69.3
88.9
66.6
83.3.
74.4
76.4
77.4
78.4
Total Industry
Industrial Materials
CAPACITY UTILIZATION
SEPTEMBER DATA
SEASONALLY ADJUSTED, PERCENT
110
TOTAL INDUSTRY
TOTAL MATERIALS
90
70
50
110
UTILITIES
MINING
90
70
50
110
MANUFACTURING
90
REFINED PETROLEUM
PRODUCTS
70
50
110
MOTOR VEHICLES
AND PARTS
90
70
50
I I I I
1968
1971
1974
1977
30
1980
1983
1968
1971
1974
1977
1980
1983
MANUFACTUftSNO, H8NING AND UT1UT9E8
Tablet
Capadfy Utilization
Monthly, seasonally adjusted, percent of capacity
1973 I 1975 I 1978
LOU
-80
HIGH
1 HIGH
I
88.4 I 7 1 . 1 | 87.3
Scries
Total Imiustfy
Manufacturing
Primary processing
Advanced processing
Durable manufacturing
Stone, c lay and glass products
Iron and steel, subtotal
Nonferrous metals, subtotal
Fabricated metal products
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Autos
Aerospace and misc. trans, eqp.
Instruments
|
I
1 69.6
1967 I IEA1
-82
I AGO
LAIMaJ1 BOMTi \
82.4
87.9
i 69.0 I 87.5 | 6 8 . 8
81.8
93.7
85.5
66.2
68.2 i 9 1 . *
69. « I 85.9 I 7 0 . 0
84.0
80.6
87.9
88.0
103.3
99*0
86.3
88.3
88.7
98.7
11
76.0
89.6
Nondurable manufacturing
Foods
Textile mill products
taper and products
Chemicals and products
Petroleum products
Rubber and plastics products
| 1982
| LOB
67.6
64.0
69.2
60.8
65.7
71.8
62.3
{ 51.3
{
| 68.0
{ 73.7
|
I
j
j|
! 89.4 |
| 90.4 |
| 97.5 |
I 98.2 |
| 90.0 I
I 83.1 |
S 90.6 j
| 94.5 I
1 91.6 !
93.9
92.3
64.8
63.0
38.8
62.1
60.7
61.6
74.7
46.1
35.8
69.1
73.1
80.5
78.4
82.3
83.8
79.6
79.8
80.0
i 78.6
i SI
| 78.1
83.5
I
I
I
j
71.1
JAM 1
rn i
ffiAA 1
70.7
71.0
71.8
APB I
Ml
73.1
73.9
i. JOMBi
79.8
JQLII
AM 1. -5HL
7§.3
77.1
78.9
! 7 0 . 6 > 70.0
70.6
71.6
72.9
73.8
74.9
76.3
77.1
78.4
68.6
70.9
70.8
70.8
72.1
71.5
73.4
72.5
74.6
73.4
75.7
74. a
77.0
75. §
78.2
76.5
79*#
77.a
66.4
64.2
49.1
66.2
60.9
61.0
76.4
58.7
57.8
69.4
72-6
67.1
66.0
53.6
68.7
62.4
60.1
76.0
63.5
63.9
67.8
72.0
68.3
67.8
55.7
71.8
64.3
61.0
77.9
63.7
59.5
68.1
72.2
69.7
69.1
57.0
73.6
65.0
62.9
79.3
65.0
61.2
68.2
72.6
70.7
69.5
57.8
75.7
65.0
64.0
80.4
67.7
64.0
68.0
72.9
71.8
70.6
58.0
75.4
66.6
65.4
81.2
70.8
70.5
67.f
72.8
73.1
72.1
59."
74.i f
68.! I
67.:
83.1
74.1
77.:
68.0
7».2
74.5
74.4
62.1
74.2
70.1
6S.4
83.2
75.7
78. S
68.2
75.4
76.8
76.6
71.5
69.8
85.7
77.8
80.5
68.6
7®. 9
74.5
78.5
76.9
90.4
9 65.2
i 69.2
I 76.3
75.1
77.6
79.9
88.5
66.5
68.2
78.6
75.8
76.9
80.7
88.8
67.4
70.2
80.9
76.9
77.5
83.6
89.1
68.2
73.9
84.1
77.7
78.3
85.4
91.6
68.8
76.0
85. 5
78.7
79.2
86.8
92.3
69.8
75.6
87.2
79.7
79.8
89.9
93.4
70.5
77.1
87.9
80.5
81.3
69.0
71.4
I
|
I
|
(}
67.3
65.7
46.6
69.6
63.9
64.6
75,9
58.2
55.9
69.1
76.6
i
}
I
|
|
|
8 9 . 1 i 71.0 } 87.2 J
1 73.8 83. S1
85.7 | 77.2
85.2 \ 7 6 . 5 J 8 3 . : I
95.4
61.3 1 91.3 j 73.0 j 8 6 . ; I
96.7
69. 1 S 9 5 . 1 } 34.2 i 89.< }
86.2
65.9 S 83.6 I 64.0 j| 78.^1i }
99.1 | 84.6 ! 93.0 i 71.5 !S 89.1
» I
97.%
6 2 . 1 I 91.5 ! 74.0
8 8 . .1
74.7
76.5
77.0
88.3
65.6
74.2
78.4
Mining
91.8
69.6
73.8
69.9
68.1
67.5
68.2
68.1
69.5
7@.2
7®.§
Utilities
Electric utilities
9*.9
82.0
97.6 j 82.1
86.8
79.0
88. 6
81.0
87.0 |i 77.9 J S9.8 | 79*4
78.4
77.2
77.7
76.5
79.4
78.5
80.9
80.1
80.9
80.0
80.8
79.4
83. 6
82.9
84.3
83. 8
83.1
§2.3
1982
UTXLIZaTXOI
1983
195.5
i
IIII
1
196.4g
86.0
69.6
I 90.4
i
S6.5
||
}
9!.5
94.6
71.2
75ef
89.9
95.4
78.6
jj
Table 2
Output, Capacity, and Captdty
Quarterty, seasonally adjusted
Series
1982
_IUTotal Ifteltgstfy
133.2
Manufacturing
137.7
Primary processing
Advanced processing
Durable manufacturing
Stone, clay and glass products
Iron i n d steel, subtotal
NonftmHis metals, subtotal
Fabricated metal products
Nonelectric®! machinery
Electrical machinery
Motor vehicles and parts
Autos
Aerospace and misc. trsn®. ecjp.
Instruments
Nondurable manufacturing
Foods
Textile mill products
Pap©r and products
Chemicals and products
Petroleum products
Rubber §MH£ pi&stics products
132.4
140.5
124.8
128.7
57.3
101.1
114.0
146.4
169.©
119. 1
100.7
98. 1
164.2
156.4
150.2
125.4
151.3
195.4
122«9
260.0
Mining
117.2
Utilities
Electric utliities
167.9
189.1
OOTPOf
1983
I
1
135.-3| 138.5
1
134.51 138*4
129.31
137.31
1
119.81
126.9!
49. 4|
94.3!
107.31
139.75
165.5?
104.5J
8 1 . 7J
98. 71
156.1|
1
155.7|
152.11
123.7|
153.5|
194.31
120.8;
252.11
1
117.0|
<
166.28
187.4|
J
11
I
J
IIIJ
1982
III
CAPAClf?
8983
if
s
I
144.5
151.61 192.®
«
193.7| 194.6
145.2
152.61 193.9
194.88 195.7
196.6
137.0
139.7
145.2
145.1
152.71 193.0
152.3« 194.3
193.7| 194.3
195.4J 196.5
194.8
197.6
124.2
131.8
63.4
102.3
110.6
137.6
170.7
120. 0
10-1.4
97.9
154.0
131.1
139.7
69.2
111.2
116.4
146.2
179.9
130.7
109.5
98.1
155.7
139.01 183.3
S 198.1
J 121.3
111.3| 148.4
125.1? 175.5
157.3| 223.9
190.01 219.6
145.4| 194.9
132.3| 169. 1
99. 1.| 141.0
162.5J 210.9
184.09
198.81
120.5J
148.4|
176.28
225.3§
220.9|
194.4J
168. 2 J
142.1|
212.0|
184.7
199.6
120. 1
148.4
176.9
226.7
222.4
193.7
167.8
143.1
213.0
185.4
200.4
120.1
148.4
177.6
228. 1
224.1
192.7
167.8
144.2
214.1
159.0
153.1
129.5
156.9
201.9
113.3
264.1
165.5
155.7
139.3
160.5
211.4
122.5
286.3
172.21
8
«
167.1«
J
125.21
302.71
209. 3
194.4
164.0
174.6
298.4
165. 4
333.7
210.5|
195.81
163.8 8
175.31
301.3|
164.61
335.01
211.7
197.2
163.6
175.9
304.1
163.8
336.0
212.8
198.7
163.4
176.4
306.8
163.0
336.8
116.7
112.3
163.6
185.2
169.6
192.5
116.1| 164.8
1
176.6| 206. 5
201.7| 236.5
1
165.S| 165.2
165.3
2 0 7 . 4 | 238.5
237.78 239.2
1
209.8
241. 1
III
If
71.7
I
69.81
197.5J
1
195.38
198.68
71.0
18S.1S
6S.1
65.0
47.2
68.1
64.9
65.4
77.0
61.1
59.6
69.6
77.9
|
148.4)
178.31
229.68
225.7J
191.71
167.8|
145.21
215.11
213.9J
I
68.6
72.3
162.18
337.7}
74.8
77.3
76.5
86.6
65.5
74.3
77.9
165.4|
71.1
s
176.98
j
211.11 81.3
243.0! 80.0
_
L
I
II
—Hi
71.2
73«9
77.2
70.7
73.8
77.3
66.8}
70.21
1
65.11
63.81
41.0|
63.68
60.9|
62.08
74.9|
53.88
48.6;
69.5g
73.7!
1
74.0 8
77.7|
75.51
87.68
64.51
73.4|
75.3|
I
70.9!
70.5
71.1
74.6
73.5.
78.2
76.7
§7.2
66«0
52.8
68.9
62.5
60.7
76.8
62.0
50.4
68.4
72.3
70.?
69.7
57.6
74.9
§5.5
64.1
80.3
67.8
65.2
68.0
72.8
74.?
75.1
77.6
79.1
89.2
66.4
69.2
78.6
77.8
78.3
85.3
91.0
68.9
75.2
85.6
80.5
70.6
67.9
70.2
80.18
78-3J
78.5
77.4
80.8
79.8
83.6
83.0
8
69.08
8
L
75.0
70.1
68.5
84.2
75-9
78.8
68.3
75.5
94.4
77.2
£9.6
INDUSTRIAL MATERIALS
Table 3
Capacity Utilization
Monthly, seasonally adjusted, percent of capacity
1973
HIGH
Series
| YEAB 1
i AGO i . . 1 9 8 3
I flOMTH I JAN |
92.6
1975 I 1978
1982 i 1967
I - 8 0 ) LOU I -82
1 HIGH
1
69.3 i 88.9
6 6 . * I 83.3
I
91.4
|
63.5 I 88.4
Metal materials
97.8
68.0
I 95.4
Raw steel
Aluminum
107.1
96.8
68.0
73.4
94.4
95.1
99.4
95.5 j
72.4
64.2
94.5
84.4
LOW
1
Industrial Materials
Durable goods materials
Nondurable goods materials
Textile, paper, and chemical materials
Paper materials
Chemical materials
Energy materials
PEfc I
HAB |
APB 1
HAT 1
JONEi
JOLTI
AUG 1
SEP
6 8.7
70. 1
7J.5
72.5
73.5
74.4
7 6.4
77.4
78.Q
I 79.7 I 63.2 | 6 2 . 3
64.2
66.0
67.7
68.9
70.0
72.0
73.4
74.8
4 6.2 I 82.2 | 52.6 I 5 3 . 3
56. 1
58.8
59.9
61.0
61.2
62.2
63.8
65.2
102.9
97.9
40.2
57.9
1 84.8 1 45.2 I 4 7 . 9
I 90.6 | 60.6 | 5 9 . 0
52.1
58.3
55-7
59.8
56.9
60.5
58.0
63.0
58.2
64.5
59.4
68.0
61.0
70.5
67.4
91.7
70.7
I 86.5 I 73.3 I
7 3.4
75.3
76.8
77.2
78.7
79.6
80.4
81.2
82.6
65.4
92.3
68.6
86.5
71-3
71.4
74. 1
75.8
76.4
78. 1
79.2
80.1
80.8
82.1
97.9
91.3
86.3
64.0
93.4
85. 1
90.8
66.5
90.9
66.4
90.8
69.9
90.3
71.9
91.0
72.6
92.9
74.0
93. 1
75.3
96.7
75.6
95.5
76.2
88.9
78.5
88.5
79.1
80. 1
79.2
79.2
78.9
78.5
78.8
82.7
82.7
mi
1 1982
III
59.8
L
I
69.01
81.8
j
Table 4
Output, Capacity, and Capacityr Utilization
Quarterly, seasonally adjusted
Series
1982
IT T
Industrial Materials
Durable goods materials
Metal materials
Raw steel
Aluminum
Nondurable goods materials
Textile, paper and chemical materials
Paper materials
Chemical materials
Energy materials
132.6
124.7
7 3.0
55.2
104.9
155. 1
158.4
145.9
188.5
| 123.8
OUTPUT
1983
I
1
128.7) 134.8
17
1
125.2
I
78.6
66.5|
1 61.9
49.9) 99.0
97.5)
1
157.0)
1
160.8)
147.6|
191.9}
163.7
169.3
149.9
204.7
1
121-5) 122.2
II
141.7
134.7
III!
1
1
1
149.6| 191.0
1
i
143.8| 194.4
84.9 "• 8 9 . 0 |
1
68.7
1
105.1
1
I
1
171.7 178-8J
I
179.6 187.7|
1
153.4
1
219.4
1
I
1
121.5 127.61
J
Definition. This release contains estimates of output, capacity, and capacity utilization for the
nation's factories, mines, and electric and gas utilities. Estimates of actual output and capacity output are expressed as percentages of 1987 actual output. Estimates of capacity utilization
are calculated as ratios, In percent, of the Federal Reserve's seasonally adjusted indexes of Industrial production to the Indexes of capacity. The capacity indexes are based on a variety of
data, Including capacity data in physical units, surveys of capacity growth and utilization rates,
and estimates of capital stock growth. Instead of a formal definition of capacity the concept of
practical capacity is applied, which is 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. '
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. 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.
CAPACITT
1983
IV
I
1
192.3
I
1982
III
II
192.9
195.6
140.6
194.8| 195.2
1
140.JJ 140.2
139.9
120.0
167.5
119.4
167.7
119.1
167.7
193.41
I
J
196.0|
215.6
167.6)
1
1
2 16. 9 | 217.8
218.8
1
1
1
219-6|
226.8
2 2 8 . 3 | 229.4
230.7
231.6|
163.6
290.6
1 165.3
164.4| 294.8
292.8|
J1
1 5 3 . 3 | 153.9
166.1
296.6
152.8
154.3
1
I
1
154.7)
1
III
73.5
77. 4
6 7 . 11
64.2
6 0 . 21
I
i
47.
64. 2
68.9
73.4
56. 1
60.7
63. 7
4 1 . 7|
58.
1
1
51. 9
59. 0
57.7
62.7
75-2
78.5
81. 4
73. 8
77.9
81 0
90. 7
69 4
92.3
74.0
79. 5
78.7
51.9
46.0
62.6
71.9
i
i
I
II
70. 1
69.4
•
139.8|
UTILIZATION
1983
IV
I
69.8
89. 1
64.9
81.0
1
72.
1
7 0 . 5)
•
89.7|
65.5|
1
1
7 9 . 2|
1
82 4
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 below 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 methodology used to estimate the series is discussed in New Federal Reserve
Measures of Capacity and Capacity Utilization. Federal Reserve Bulletin, July 1983. Revised
data from 1967-82 are included in the statistical supplement to the July 1983 capacity utilization release, which may be obtained from Publications Services. Board of Governors of the
Federal Reserve System, Washington. DC. 20551.
Rounding. The rounding algorithms applied to the capacity, output, and utilization rate series
are independent. Aggregates are derived from unrounded detailed components.
Release schedule for 1983. Approximately 11 a.m. on August 17, September 16. October 17.
November 16 and December 16.
@FedFRASER