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FEDERAL RESERVE statistical release
G.3 (402)

For Immediate release

October 19, 1987

CAPACITY UTILIZATION
Manufacturing, Mining, Utilities, and Industrial Materials

The estimates of capacity and capacity
utilization have been revised. The revised data for
1987 are in this release; revised data for 1981-1986
as well as unrevised historical data are contained
in the attached supplement.

I
Capacity utilization in manufacturing, mining, and utilities
remained at 81.2 percent in September, as increased utilization at mines
was offset by slight declines in operating rates at manufacturers and
utilities. Taking a longer view, operating rates have been trending
upward during the past year, almost fully reversing the two year decline
that started in the third quarter of 1984. The increase in utilization
over the past year has resulted from broad-based production increases in
most industries, except automotive goods.
Within manufacturing, most industries showed only small changes
during September. The largest absolute changes were in primary metals
and motor vehicles and parts. The operating rate for primary metals
producers continued its upward trend of the past year. It has risen
15.5 percentage points during that period as production has increased
and some steel mill capacity has been shut down. Utilization in the
motor vehicles and parts industry fell again in September; automobile
production rebounded slightly, but this was more than offset by a large
decline in truck production.
Producers of industrial materials continued to utilize 80.8
percent of their capacity in September. Gains in operating rates in
nondurable goods materials industries were countered by declines for
durable materials producers.
The capacity and capacity utilization estimates have been revised
beginning in 1981, while the related production indexes have been
revised back to 1985. In the aggregate, neither production nor capacity
growth between the end of 1984 and June 1987 have been revised
significantly. However, there have been significant revisions to
utilization rates in many of the individual industries.

Capacity Utilization: S u m m a r y
Percent of capacity, seasonally adjusted
Series
Total Industry

1973

Higli

1975
Low

1978
-80

1982
Low

1967
-86
Avq.

JUN

1987
I JUi.

I AOG

I S£P

68.6

72.1

84.9

69.5

81.5

80.3

81.1

81.2

81.2

Manufacturing
Durable
Nondurable

87,7
87.4
88.3

69.9
67.9
71.8

86.5
86.3
87.0

68.0
63.7
74.2

80.6
78.7
83.5

80.8
77.8
85.2

81.5
78.5
85.8

81.6
78.8
85.7

81.5
78.8
85.5

Mining
Utilities

92.8
95.6

87.8
82.9

95.2
88.5

76.9
78.0

87.2
87.3

76.6
79.0

76.8
80.0

77.4
79.0

78.2
78.8

92.0

70.5

89.1

68.5

82.3

79.8

80.4

80.8

80.8

Industrial Materials




CAPACITY UTILIZATION

SEPTEMBER DATA

SEASONALLY ADJUSTED. PERCENT

110
TOTAL INDUSTRY

TOTAL MATERIALS
90

70

50
110
MINING

UTILITIES

90

//

\/~A
V/

MANUFACTURING \

V

/

I

70

50
110
MANUFACTURING

ELECTRICAL
MACHINERY
90

NONDURABLE

70

V/

MOTOR VEHICLES
AND PARTS

30
1972

1975




1978

1981

1984

1987

1972

1975

1978

1981

1984

1987

MANUFACTURING, MINING AND UTILITIES
Table 1

Capacity Utilization
Monthly, seasonally adjusted, percent of capacity
1973 1 1975 1 1978 1 1982 | 1967 1 1986 1
Series
«ig* 1 LOM k - 8 0 1 Low 1 -86 | SEP 1
i
1 fli<lh 1
Total Industry
Manufacturing
Primary processing
Advanced processing
Durable manufacturing
Stone, clay and glass products
Primary metals
Iron and steel, subtotal
Nonferrous metals, subtotal
Fabricated metal products
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Automobiles
Aerospace and misc. trans, eqp.
Instruments
Other durables
Nondurable manufacturing
Food and kindred products
Textile mill products
Paper and products
Chemicals and products
Petroleum products
Rubber and plastics products
Other nondurables

i
A
1
1
88.61 72.11 86.91 69.511
1
1
87.7|1 69.91 86.51 68.01
•
1
1
91.9| 68.31 89.11 65.01
86.01 71.111 85.11 69.51
87.41 67.91 86.31 63.711
89.3| 67.11 86.61 62.91
101.91 67.0| 97.11 45.81
105.81 66.61 100.31 37.61
95.61 62.11 91.1| 60.81
85.01 64.71 87.41 61.31
89.0) 68.21 86.0| 62.9|
85.71 63.7| 89.91 66.91
97. 11 52.7| 93.31 47.01
91.8| 43.7| 93.31 36.61
77.01 69.61 87.11 70.71
89.21 74.9| 88.91 77.81
87.71 69.01 81.0| 69.11
•
88.81 71.31 87.0J 74.21
85.81 77.61 85.11 76.51
92.11 58.91 88.31 70.61
95.61 67.71 92.71 80.21
88.61 69.2| 82.91 67.61
99.61 83.71 91.71 68.81
97.51 59.51 89.41 71.21
86.41 72.31 92.4| 78.S1

1
81.51
1
80.61
•
81.61
80.11
1
78.71
78.11
79.6|
78.61
81.21
77.71
78.21
78.2J
78.QI
76.71
77.11
83.21
81.6|

19 a7
JAI 1 FSB 1 BAB 1 AP& 1 HI! | J0« 1 JDX 1 A0G | SEP
79.2

79.7

79.7

79.6

79.9

80.3

81.1

81.2

81.2

79.6

80.0

80.3

60.2

80.4

80.8

81.5

81.6

81.5

82.7
78.2

82.4
79.0

83.1
79.1

83.5
78.7

83.2
79.2

84.0
79.2

85.2
79.8

85.2
80.0

85.2
79.8

76.91
82.51
68.71
62.11
78.5|
77.21
72.31
73.71
81.11
77.81
89.41
78.3|
81.21

76.9
84.8
69.8
63.1
79.5
77.1
70.9
75.0
80. 0
72.3
89.5

77.9
83.0
74.2
70.1
80.2
78.3
73.0
74.0
83.0
78.8
90.0
77.7
81.9

77.5
83.3
73.6
69.9
78.7
77.*
73.8
73.9
78.1
74.3
89.2
78.8
81.0

77.6
80.8
74.5
71.0
79.5
76.7

73.3
75.0
79.6
71.6
89.5
78.2
81.7

77.8
81.1
76.4
74.2
79.5
78.4
74.2
74.7
76.2
67.4
88.9
79.3
81.9

78.5
81.6

77.7
81.2

77. 6
82.5
72.2
66.4
80.7
76.9
71.8
75.2
83.9
80.8
90.0
78.9
81.4

77.5
66.5
88.7
78.8
82. Q

78.8
80.5
82.6
82.7
82.6
78.0
75.4
76.2
77.2
59.0
89.3
79.7
81.6

78.8
80.4
84.2
85.0
83.0
78.1
75.6
76.1
75.2
60.7
89.5
80.0
81.2

82.31
84.71
88.21
78.71
87.01
84.7|
85.91

83.11
79.81
88.81
91.5|
79.5|
85.31
84.71
84.81

83.7
79.2
87.3
92.7
81.4
67.2
84.9
85.6

83.6
80.1
88.5
92.6
80.9
83.5
85.0
85.2

83.9
80.4
89.8
92.3
80.5
83.8
85.9
85.7

84.2
79.4
92.9
92.5
81.5
85.5
86.5
85.8

84.6
80.1
92.1
92.7
81.9
84.1
87.0
86.9

85.2
80.1
93.1
93.3
82.4
83.7
88.4
87.5

85.8
80.4
94.9
94.8
83.4
84.1
89.2
87.7

85.7
80.9
92.2
95.2
83.9
83.6
88.8
86.8

85.5
80.2
92.4
95.2
84.1
83.7
88.9
86.5

83.5|

78.81
1

7 9 . 44
1

81.5|
78.41
1

79.2
77.4
81.5
78.3
75.3
75.5

Mining

92.81

87.8|

95.21

76.9|

87.21

73.11

76.1

75.8

75.5

75.9

76.5

76.6

76.8

77.4

78.2

Utilities
Electric utilities

95.61
98.71
I

82.91
83.0|

88.51
87.61

78.01 87.31
78.21 88.31
A

77.51
80.91

78.5
80.8

78.8
81.1

78.2
81.8

76.8
80.7

79.2
84.8

79.0
84.6

80.0
85.9

79.0
84.4,

78.8
83.8

1

Table 2

Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted

1
1987
1
02
Q4
gi
03
1
4
1
124.8 125.91126.9 128.2 130. $4
»
1
129.2 130.41131.6 133.2 135.911
(JUT PUT

Series

Total Industry
Manufacturing
Primary processing
Advanced processing
Durable manufacturing
Stone, clay and glass products
Iron and steel subtotal
Nonferrous metals, subtotal
Fabricated metal products
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Automobiles
Aerospace and misc. trans, eqp.
Instruments
Other durables
Nondurable manufacturing
Food and kindred products
Textile mill products
Paper and products
Chemicals and products
Petroleum products
Rubber and plastics products
Other nondurables
Mining

1986
Q3

96.8

157.9 158.71159.5
1
162.4 163.41164.$

DTIJ

J

1986
03

160.4 161.34

79.0

03

166.71
I
139.81
182.91
1
170.24

83.5
79.0

85.2
79.9

77.5
83.4
72.1
66.5
80.1
77.5
71.$
74.7
82.3
77.3
89.9
78.1
81.5

77.6
81.7
74.8
71.7
79.2
77.6
73.8
74.$
78.0
69.7
89.2
78.8
81.5

78.7
80.6
82.9
81.7
82.4
78.1
75.4
76.0
76.6
62.0
89.2
79.5
81.6

83.7
79.9
88.$
92.5
80.$
84.8
85.2
85.$

84.7
79.9
92.7
92.8
81.9
84.4
87.3
86.7

85.7
80.5
93.1
95.1
83.8
83.8
89.0
87.0

76.3

77.5

78.3
83.4

79.3
84.7

96.91 98.8 99.0 100.94

131.2

130.84130.4 129.7 129.0| 73.#
1
1
137.31137.7 138.3 138.81 78.3
150.9*1150.8 151.9 152.94 82.3

1

107.3 109.11108.1 108.3 110.11
122.9 123.74122.5 126.6 129. 51

137.0
149.3

i
1

•

81.2
81.5

80.9

157.6|158.9
169.11170.3
124.81125.2
149.91151.1
166.94167.8
109.41109.8
181.51183.8
155.51157.5

160.3
1
171.6
4
125.7
1
152.4
1
168.7
110.1 110.51
1
186.3
159.6 161.81

03

79.9

82.7
78.7

156.4
168.9
124.4
148.7
166.0
108.9
179.2.
153.7

j

02

81.4
78.6

1
137.0
1
116.5
141.5 146.01
1
138.2
93.0 92.61
1
162.7
138.4 140.81

135.21136.1
111.91110.$
139.81139.$
133.81135.8
92.84 93.1
155.54156.7
133.51134.6

01

1
79.44 79.$

89.5

1
102.31
111.21
154. 91
173.81
108.31
92.21

153.51
145.71
133.81
138.511

04
1

166.8
143.9
106.$
97.7
123.0
139.3
199.9
225.5
139.2
144.9
168.0
176.6
157.2

146. 14
1
134.01
1
84. 11

01

1987

79.5

165.6
1
137.54138.2 139.9
179.11180.3 181.6
1
167.61168.4 169.3
1
143.31 144.0 145.1
105.1|104.9 103.3 102.64
4
95-61 93.8 92.5
1
123.91123.2 123.7
140.01140.8 141.5 142.34
205.44
201.41202.8 204.1
226.51227.4 228.1 228.94
139.71140.2 140.7 141.24
146.-11 147.1 147.8 148.61
169.91170.0 171.1 172.11
178.31180.0 181.6 183.34
158.7H60.3 162.2 164.91

Note. Data for output are percentages of 1977 output as shown in the Federal Reserve's season*
ally adjusted indexes of industrial production. Capacity is also expressed as a percentage of




4
1

136.9
177.8

1

Utilities
Electric utilities

04

CAPACI^i
1987
02
01

119.H

1
111.$ 113.44114.3 116.1
139.9 140.61142.0 143.5
128.2 129.11130.5 131.4
117.$ 118.51120.2 118.6
73.9 74.94 75.9 77.3
61.9 61.94 62-4 66.3
95.6 96.74 98.7 98.9
107.1 108.$4109.1 109.9
145.1 144.81145.8 150.6
166.5 168.51169.9 170.9
111.4 109.71115.4 109.7
108.1 109.64113.7 103.1
149.8 150.81152.8 152.6
139.9 139.51140.6 143.1
127.8 131.21130.7 132.2
1
135.7
130.7 132.11133.1
134.7
110.0
138.9
132.5
92.8
152.9
131.3

1986
03

79.84
1
82.51
78.5J
I
76.8
77.01
82.2 82.71
68.6 7Q.4I
62.5 64.81
77. J 78.61
76.9 77.81
72.6 71.91
73.8 74.41
80.0 78.5|
74.6 75.04
89.2 89.24
78.7 78.24
81.3 82.74
1
83. t> 83.81
80.2
88.4
92.8
79.8
85.3
65.3
85.5

80.01
89.71
93.3|
80.21
84.94
85.71
85.91
1

74.11 75.8
1

79.41 78.5
82.51 81.2

1977 actual output. Capacity utilization percentages are calculated as ratios of production to
capacity.

INDUSTRIAL MATERIALS
Table 3

Capacity Utilization
Monthly, seasonally adjusted, percent of

j JUJ1 J J 0 1 j 1 0 G J SEP

I

Industrial Materials

92.0|
* 1
I
Durable goods materials
91.81
I
Metal materials
99.21
1
Raw steel
106.01
Aluminum
95. 71
I
1
Nondurable goods materials
91.11
I
92.81
Textile, paper, and chemical materials
I
Pulp and paper materials
98. 4 J
Chemical materials
92.51
I
I
Energy materials
94. 61
J

70.51
|
1
64.4J
67.11
66.4|
73.0|
1
66.71
1
64.81
70.6J
64.4|
I
86.9|

89.11
I
I
89.8|
I
93.61
I
98.91
97.41
I
1
88.1|
I
89.41
1
97.3|
87.91
1
1
94.01
1

I
68.51
1
I
60.9|
I
45.7|
I
36.11
58.81
1
1
70.7|
I
68.8|
I
79.91
63.51
I
I
82.3|

77.7|
I

78.7

78.7

78.7

79.1 79.3

79.8

80.4

79.11

73«7|

74.4

74.7

}5.2

75.0. 75.1 75.9

76.$

77.0 76.3

77.81
1
80.3|
87.4|
I
I
83.2|
I
83.61
1
91.41
80.8|
1
1
89.3|

65.11
I
59.6)
68.91
I

66.2

67.8 68.7

68.8 69.7

71.5

73.9

76.6 77.4

64.2
78.1

63.3 67.8
78.1 79.4

70.6 73.4
80.8 80.3

76.7
84.7

79.5 36.5
86.8 88.6

82.3|
I

84.0|
I
85.0|
94.71
81.2|
I
I
80.6|
I

80.8 80.8

85.1

84.6 84.8 86,5

86.2

86.1 87.7 87.4 87.8

86.4

85.4

85.8 87.5 87.1

87.1 89.2 88.9 89.4

96.4
83.4

95.6
82.3

94.6 95.1 95.7
82.2 83.9 83.9

96.3 99.6
99.9
83.1 84.2 84.5

82.5

81.9

80.9 81.3 82.1 82.8 82.3 32.8 82,8

Table 4
Output, Capacity, and Capacity Utilization
Quarterly, seasonally adjusted
Series

Industrial Materials

Durable goods materials
Metal materials
Raw steel
Aluminum

Nondurable goods materials
Textile, paper and chemical materials
Pulp and paper materials
Chemical materials
Energy materials

1
1
Q3
1
Q4
1
113.0 114.31115.0 116.5 110.71
1
1
1
125.81
120.71121.4
122.9
119.0
1
j
73.2 75.41 74.7 77.0 83.11

1986
Q3

O0TPDT
1987
Q1

•

1

58.61 60.9 67.9
1
70.91 74.9 77.8
1
1
1
1
1
118.3 120.31121.2 124.0
126.91
*
118.9 120.91122.3 125.1 128.71
1
i•
134.1 137.01136.4 137.7
118.1 120.31122.9 125.3
1
4
1
1
1
98.1 97.84 98.3 98.7
99.21
4
60.3
68.3

1986
Q3

Q4

CAFACXTX
1987
Q2
Q1

1
Q3

1
1

1

145.1 145.61146.1 146.7
1
147.24
1
1
16U6|
162.3
163.91
163.1
161.0
I
1
112.5 111.51110.6 110.0 109.41
i

Q3

77.9

78.51 7a. 7
1

79.4

80.7

73.9

74.71
I
67.71
1
61.51
72.7|
1
1
84.71
I
85.41
|
96.71
81.41
1
1

74.9

75.4

76.8
76.0

65.Q
62.0
67.7
83.6

i

140.9 141.61M2.4
I
140.7 141.7| U2.S
147.0 147.8|148.8
1
1
120.5 120.41120.3
I

1987
Q1

Q4

i

i
97.3 95.31 93.6 92.2
1
100.9 97.4| 95.4 94.9
1
1
1
1
141.4 142.11142.9 143.9 144.74

UT£JbJ.SAX.1.

1986

143.4 144.41
I
143.9
1
149.9
1
1

84.4

120.2 120.14
1

81.5

95.3
80.3

67.5

7<*.O

65.1
78.$

13.6

84.9

H*.2

87.7

35.9

81.Z

89.2

95.5
82.6

95.7

«1.7

« . ,

82.7

1

Explanatory Notes
Definition. This release contains estimates of output, capacity, and capacity utilization for the
nation's factories, mines, and electric and gas utilities. Output data are the Federal Reserve's
seasonally adjusted indexes of industrial production, which express output as percentages of
1977 output. The capacity estimates are expressed as percentages of 1977 output as well.
Capacity utilization percentages are calculated as ratios of production to capacity. The capacity indexes are based on a variety of data, including capacity data in physical units compiled
by trade associations, private and government surveys of capacity growth and utilization rates,
and estimates of capital stock growth. The concept of practical capacity is applied, which is
defined as 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. Because of the
large and heterogeneous database, changes in utilization rates may be more meaningful in the
analysis of business conditions than any particular level of these rates.
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 utifities
estimates aggregate to the total index. Primary processing includes textile mill products, paper
and products, industrial chemicals, petroleum products, rubber and plastics products, lumber
and products, primary metals, fabricated metal products, and stone, clay, and glass products.
Advanced processing includes foods, tobacco products, apparel products, printing and publishing, chemical products such as drugs and toiletries, leather and products, furniture and fixtures,
machinery, transportation equipment, instruments, miscellaneous manufactures, and
government-owned-and-operated ordnance facilities. 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.




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 toftl
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 reHsion. 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 basic methodology used to estimate the series is discussed in Richard D. Raddock, "Revised Federal Reserve Rates of Capacity Utilization," Federal Reserve Bulletin, Vol.
71 (October 1985), pp. 754-66. Revised data for 1984-85 as well as historical utilization rates
since 1967 (1948 in the case of manufacturing) are included in the statistical supplement to the
September 1986 capacity utilization release. Copies may be obtained from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551
Rounding. Utilization rates are calculated from unrounded capacity and production indexes.
Aggregates are derived from unrounded detailed components.
Release schedule for 1987. Approximately 11 a.m. on January 20, February 17, March 16,
April 16, May 18, June 17, July 16, August 17, September 16, October 19, November 16, and
December 16.