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FEDERAL RESERVE statistical release G.3 (402) For immediate release September 17, 1980 CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS August 1980 Capacity utilization in manufacturing edged up by 0.1 of a percentage point in August to 74.5 percent, and the utilization rate for producers of industrial materials increased by 0.5 of a percentage point to 74.2 percent. The August rate for manufacturing was 12.7 percentage points below its last cyclical high in March 1979, and the materials rate was 13.6 percentage points below its July 1979 high. For the primary processing industries, utilization increased by 0.8 of a percentage point to 71.3 percent, and the rate for the advanced processing industries declined slightly to 76.3 percent. The rates for the iron and steel and fabricated metals industries rose substantially in August, while the increases in the operating rates of the textile, paper, rubber and plastics, electrical machinery, and instruments industries were more moderate. Only slight changes occurred in utilization rates for industries producing food, chemicals, nonferrous metals, nonelectrical machinery, aerospace and miscellaneous transportation equipment, and clay, glass, and stone. There were sizable drops in the utilization rates for producers of petroleum products and motor vehicles and parts.. For the latter, the August rate was below the previous cyclical low in February 1975. Producers of durable goods materials operated in August at 69.0 percent of capacity, 0.9 of a percentage point above the July rate. However, the utilization rates for nondurable goods materials and energy materials were almost unchanged at 76.6 percent and 85.8 percent, respectively. (This release incorporates revised data for 1979 and 1980, based on slightly revised capacity indexes and industrial production indexes.) MANUFACTURING PERCENT INDUSTRIAL MATERIALS 100 ENERGY TOTAL 80 TOTAL I 60 100 I NONDURABLE GOODS PRIMARY PROCESSING 80 ADVANCED PROCESSING I 1068 I I 1971 I I I I 1974 I I I 1977 I I 1980 60 1971 1974 1977 I OUTPUT, CAPACITY AND CAPACITY UTILIZATION Output and Capacity are Percentages of 1967 Output; Capacity Utilization is a Per Cent of Capacity. Seasonally Adjusted Manufacturing SERIES M A N U F A C T U R I N G , TOTAL 1973| HIGHI 1975 LOW 1979 AUG. MONTHLY CAPACITY U T I L I Z A T I O N 1980 SFP. OCT. NpV., DEC. J A N . 89.01 69.0 84.9 85.2 84.8 68.2 88.2 87.7 69.4 83.0 83.7 1 1 93.8| 1 85.5| _ . . 1 PRI1ARY PROCESSING A D V A N C E D PROCESSING OUTPUT L H A N U F A C T U R I N G , TOTAL 1979 II III 153.4 153.7 P R I M A R Y PROCESSING 162. U 163.9 A D V A N C E D PROCESSING 148.7 148.3 IV 1980 I | 153.4| 152.8 | 1 162.5] 160.5 I 148.51 148.8 1 84.4 84.1 87.5 86.9 83.4 82.9 86.3| 86.4 1 82.81 82.7 1 CAPACITY I | 1979 III II I 143.9) 178.6 1 1 145.0| 184.1 1 143.3| 175.6 1 83.9 FEB. MAS. A P R . HAT JUNE JULY AUG. 83.5 82.8 80.3 77.6 75.7 74.4 74.5 85.2 83.8 80.5 75.8 72.7 70.5 71.3 82.6 82.2 80.1 78.6 77.4 76.5 76.3 1980 ; 1 181.7| 183.3 1 1 187.1] 188.5 1 178.91 180.5 1 III IV 180.1 185.6 177.3 1 I 1979 IJl II 1 184.8| 85.9 1 | 190.01 83.2 1 182.0| 84.7 1 UTILIZATION jj; 1980 I IV II 1 85.3 84.4) 88.3 1 1 86.9) 1 83.0| 1 83.7 83.4 77.9 85.1 76.3 82.5 78.7 Industrial Materials SERIES MATERIALS, TOTAL DURABLE GOODS MATERIALS HETAL HATE DIALS NONDURABLE GOODS HATEBIALS TEX., PAPER, & CHEH. HAT. TEXTILE HATERIALS PAPEB HATERIALS CHEMICAL MATERIALS FNERGY M A T E R I A L S 30HTHLY CAPACITY UTILIZATION | 1980 DEC.I JAM. OCT. HOT. 19731 HIGHI 1975 LOW 1979 AUG. SEP. 92.6| 1 1 91.51 1 98.21 1 1 94.5| 1 95.11 1 92.6| 99.4| 95.5| 1 1 94.6| 69.4 87.1 86.8 63.6 85.6 68. 6 89.7 67.2 90.5 90.6 90.7 90.3 65.3 91.0 91.1 91.4 90.9 57.9 72.4 64.2 88.2 96.2 90.4 90.1 97.2 89.9 90.0 96.9 90.4 89.0 96.9 89.8 84.8 86.3 85.4 85.5 86.1 86.6 86.2 85.3 84.8 83.9 88.3 85.4 85.1 OUTPUT H A T E R I A L S , TOTAL D U R A B L E GOODS HATERIALS HETAL M A T E E T A L S 1979 II III 155.9 156.9 157.8 158.6 124.5 126.3 N O N D U R A B L E GOODS MATERIALS 174.4 176.8 T E X . , P A P E R , & CHEH. HAT. 182.1 185.0 119.4 141.6 225.9 122.7 146.8 227.7 128.8 128.2 TEXTILE HATERIALS PAPER M A T E R I A L S CHEMICAL MATERIALS ENERGY HATERIALS 1980 I I 156.5| 156.3 1 1 156.31 155.0 | 119.61 117.1 I | 179. 2| 179.3 | 187.9| 187.5 | 123. 8| 120.6 148.9] 146.1 231.8| 233.6 1 1 129.01 130.8 L IV I | 1979 III II | 145.0| 178.2 1 1 140.6] 182.9 I 100.6) 140.1 I I 165.8| 193.7 1 171.8J 201.6 | 116.4| 137.4 141.8| 150.4 208. 3| 250.5 1 | 130.21 148.0 ...... I 86.1) I 1 83.6| 1 84.8| 1 1 90.8| I 91.4| | 89.31 97.6J 90.5| 1 | 86.0| 179.8 184.3 140.3 195.6 203.7 137.9 151.9 253.6 149.2 JUNE JULY AUG. 78.3 75.7 73.7 74.2 82.2 78.8 7«.1 70.7 68.1 69.0 83.6 77.2 70.0 67.0 58.6 86.1 81.8 78.4 76.5 76.6 86.0 81.3 77.0 74.6 74.3 84.6 90.7 85.2 84.5 90.8 78.3 81.8 91.0 72.7 79.2 87.5 70.5 85.8 85.3 86.0 86.0 BAR. 85.6 84.7 83.6 82.7 84.1 82.0 90.9 90.0 88.3 91.2 90.3 88.5 86.6 96.0 91.2 87.2 94.4 90.1 86.8 93.0 87.9 86.2 87.0 86.5 CAPACITY III HAY 82.1 FEB. 86.1 1980 I 1 181.21 182.8 1 | 185.7J 187.2 | 140.61 140.7 | | 197.6J 199.8 | 205.81 208.3 1 138.4J 138.8 153. 3| 154.7 256.8| 2 6 0 . 4 1 | 150. 3| 151.1 J_ IV APR. I I III 184. 3| 1 1 188.6) I 140.81 | | 202.0) 1 211.0) I 139.2) 156.0) 264.6) 85.8 UTILIZATION 1979 II 87.5 III 87.2 86.3 86.0 88.9 90.0 90.0 90.4 90.3 90.8 86.9 94.2 90.2 89.0 96.7 89.8 151.8) 87.0 | 85.9 ! | IV | 86.3| 1 1 84.1) I 85.1) | 1 90.6) 1 91.2) | 89.4) 97.1) 90.2) I I 85.9) I 1980 I II 85.5 78.7 82.8 74. 5 83.2 71.4 89.7 82. 1 90.0 81. '4 86.9 94.5 89.7 83.7 90.3 78.7 86.6 35.7 ESTIMATES OF ACTUAL OUTPUT AND CAPACITY OUTPUT ARE BOTH EXPRESSED AS PERCENTAGES CF 1967 ACTUAL OUTPUT. ESTIMATES OF CAPACITY UTILIZATION IN PERCENT ARE CALCULATED AS RATIOS OF (1) THE FEDERAL RESERVE'S SEASONALLY ADJUSTED INDEXES OF INDUSTRIAL PRODUCTION TO (2) THE CORRESPONDING INDEXES OF CAPACITY. INDUSTRIAL HATERIALS A R E ITEMS BOTH PRODUCED AND US2D AS INPUTS BY MANUFACTURING PLANTS, MINES AMD UTILITIES; INDUSTRIAL MATERIALS COVER H A S Y OF THE ITEHS REPRESENTED IN THE PRI1ARY PROCESSING GROUPING OF MANUFACTURING AS HELL AS SOME OF THE OUTPUT OF MINES AND UTILITIES — SUCH AS IRON ORE, CRUDE OIL, AMD ELECTRICITY SOLD TO INDUSTRY. THE 1973 HIGHS AND 1975 LOWS IN CAPACITY UTILIZATION, SHOWN IN THE TABLES ABOVE, ARE SPECIFIC TO EACH SERIES AND HAY OCCU* IN DIFFERENT MONTHS. INDUSTRIAL PLANTS USUALLY OPERATE AT CAPACITY UTILIZATION RATES THAT ARE HELL BELOH 100 PERCENT; NONE OF THE BROAD AGGREGATE SERIES HAS EVER INDICATED A 100 PERCENT USE OF CAPACITY. CAPACITY UTILIZATION RATES AVERAGED ABOUT 83 PERCENT FOR HANUFACTURING FROH 1955 THROUGH 1978, AND ABOUT 85 PERCENT FOR INDUSTRIAL HATERIALS FOR 1967 THROUGH 1978. IN MANUFACTURING AS A WHOLE, UTILIZATION RATES AS HIGH AS 90 PERCENT HAVE BEEN EXCEEDED ONLY IN WARTIME. THE PEAK RATES OF UTILIZATION IN 1973 HERE ASSOCIATED WITH SIGNIFICANT UPWARD PRESSURE ON PRICES. THE METHODOLOGY AND THE SERIES ARE DESCRIBED IN FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY. UTILIZATION. REVISED DATA ARE FOUND IN "CAPACITY UTILIZATION: HANUFACTURING AND HATERIALS, J A N U A R Y 1967—DECEHBER 1978." BOTH PUBLICATIONS HAY BE OBTAINED FROM PUBLICATIONS SERVICES, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEH, WASHINGTON, D.C. 20551 OUTPUT, CAPACITY AND CAPACITY UTILIZATION Output and Capacity are Percentages of 1967 Output; Capacity Utilization is a Per Cent of Capacity. Seasonally Adjusted Manufacturing UTILIZATION HA; JUNE APR. MONTHLY CAPACITY SERIES j 19731 HIGHI 1 88.01 1 1 93.81 1 85.5| L J 1978 IV -ANOFACTURING, TOTAL PRIMARY PROCESSING ADVANCED PRCCESSING 1975 | 1979 1QV 1 JAN, FEB. MAR. 69.0 86.6 86.8 87.2 85.3 68.2 39.2 88.9 88.9 69.4 85.2 85.6 86.2 OUTPUT 1979 I II III JULY AOG T SEP. QC.I84.8 86.3 86.1 86.0 84.9 85.2 88.2 88.3 88.1 89.2 88.2 87.7 87.5 83.7 85.3 85.0 84.2 83.0 83.7 83.4 1978 IV UTILIZATION 1979 I II 86.4 86.9 CAPACITY | 1978 1979 IVJ IV I II 1 153.4| 175.6 177.0 178.6 1 511 151.7 153.8 153.4 153.7 PRIMARY PROCESSING 162.2 162.6 162.4 163.9 162.5J 181.2 182.6 184.1 185.6 ADVANCED PROCESSING 146.1 149.1 148.7 148.3 148.5| 172.7 1 174.0 175.6 177.3 MANUFACTURING, TOTAL | 1980 NOV. — DSC...!. JAN.. I 84.1J 83.9 84.4 1 1 86.3| 86.4 86.9 1 82.8| 82.7 82.9 180.1 I I I?l 1 181.7| 1 1 187.1| 1 178. 9| 1 III 85.9 85.3 IV 84.4 89.5 89.0 88.2 88.3 86.9 84.6 85.7 84.7 83.7 83.0 Industrial Materials MONTHLY CAPACITY UTILIZATION SERIES 1975 19731 HIGHI LOR 1 69.4 92.6| 1 1 63.6 91.5| 1 98.21 68.6 1 1 67.2 94.5| | 95.1| 65.3 1 92.61 57.9 72.4 99.4| 64.2 95.5J | 1 84.8 94.6| MATERIALS, TOTAL DURABLE GOODS MATERIALS METAL MATERIALS NONDURABLE GOODS MATERIALS TEX. , PAPER, & CHEH. HAT. TEXTILE MATERIALS PAPER MATERIALS CHEMICAL MATERIALS ENERGY MATERIALS I MATERIALS, TOTAL DURABLE GOODS MATERIALS METAL MATEEIALS NONDURABLE GOODS MATERIALS TEX., PAPER, 6 CHE1. MAT. TEXTILE MATERIALS PAPER MATERIALS CHEMICAL MATERIALS EMERSY MATERIALS 1978 IV 1S79 JAN. FEB. 88.4 88.4 AUG. SEP. OCT. NOV. 88.6 87.2 87.6 87.7 87.8 87.1 86.8 86.6 86.2 87.1 87.6 85.3 86.4 87.1 87.1 85.6 85.3 84.8 83.9 90.7 88.4 87.8 90.5 92.1 89.7 88.3 85.4 85.1 | 1980 DEC. 1 .TAN. 1 86.1| 86.1 1 1 83.6| 83.6 I 84.8| 84.1 1 1 90.8| 90.9 1 91.4| 91.2 1 89.3| 86.6 97.6J 96.0 90.5| 91.2 1 1 86.0| 8F.2 90.0 90.5 90.6 90.2 90.2 89.7 90.0 90.5 90.6 90.7 90.3 89.5 90.3 90.4 90.4 90.3 90.0 90.1 91.0 91.1 91.4 90.9 86.2 89.8 90.2 85.7 92.3 90.9 86.7 93.7 90.5 85.7 94.5 90.7 86.4 93.8 90.4 88.5 94.2 89.5 88.7 96.6 89.0 88.2 96.2 90.4 90.1 97.2 89.9 90.0 96.9 90.4 89.0 96.9 89.8 88.1 88.3 37.9 87.8 86.7 86.5 86.1 86.3 85.4 85.5 86.1 1978 J* UTILIZATION 1979 I II 88.2 88.4 87.5 87.4 87.4 86.3 86.0 81.1 94.7 89.3 88.9 90.0 B5.1 1 III 157.8 158.6 124.9 124.5 126.3 170.3 173.3 174.4 176.8 177. 1 179.7 182.1 185.0 119.5 138.1 218.0 118.1 136.9 224.0 119.4 141.6 225.9 122.7 146.8 227.7 128.9 129.4 128.8 128.2 ' JUIY 88.3 158.6 132.2 JUNE 88.9 156.9 157.3 HAY 87.6 155.9 156.2 APR. • OUTPUT 1979 I II 154.6 MAR. | 1978 IV! IV 1 156.5| 175.4 | 1 156.31 180.1 1 119.61 139.6 1 1 179.2| 190.2 | 187.9J 197.9 | 123.81 136.6 148.91 147.8 231.8| 244.6 1 1 129.01 145.7 1 CAPACITY 1979 I II III 178.2 179.8 181.5 182.9 184.3 139.9 140.1 140.3 176.7 19U8 193.7 195.6 199.5 201.6 203.7 137.0 148.9 247.3 137.4 150.4 250.5 137.9 151.9 253.6 146.9 148.0 149.2 1 1 IVJ 1 181.2) 1 1 185.7! 1 140.61 1 1 197.6| 1 205. 8J 1 138.4| 153.31 256.fi| 1 1 150.31 1 IJI 87.2 TV R6.3 89.6 90.4 90.0 90.4 90.6 89.5 90.1 90.3 90.8 91.2 87.5 93.4 89.1 86.2 91.9 90.5 86.9 94.2 90.2 89.0 96.7 89.8 89.4 97.1 90.2 88.4 88.1 87.0 85.9 35.9 ESTIMATES OF ACTUAL OUTPUT ANC CAPACITY OUTPUT ARE BOTH EXPRESSED AS PERCENTAGES CF 1967 ACTUAL OUTPUT. ESTIMATES OF CAPACITY UTILIZATION IN PERCENT ARE CALCULATED AS RATIOS OF (1) THE FEDERAL RESERVE'S SEASONALLY ADJUSTED INDEXES 0* INDUSTRIAL PRODUCTION TO (2) THE CORRESPONDING INDEXES OF CAPACITY. INDUSTRIAL 1ATERIALS ARE ITEMS BOTH PRODUCED AND USSD AS INPUTS 3Y MANUFACTURING PLANTS, MINES ANC UTILITIES; INDUSTRIAL MATERIALS COVER M A N Y OF THE ITEMS REPRESENTED IN THE P R I M A R Y PROCESSING GROUPING OF MANUFACTURING AS HELL AS SOME OF THE OUTPUT OF MINES AND UTILITIES — SUCH AS IRON ORE, CRUDE OIL, A N D ELECTRICITY SOLD TC INDUSTRY. THE 1973 HIGHS AND 1975 LOWS IN CAPACITY UTILIZATION, SHOWN IN TH6! TABLES ABOVE, APE SPECIFIC TO EACH SERIES AND M A Y OCCIJ* TV DIFFERENT MONTHS. INDUSTRIAL PLANTS USUALLY OPERATE AT CAPACITY UTILIZATION RATES THAT ARE WELL BELOW 100 PERCENT; NONF. OF THE BROAC AGGPSGATE SERIES HAS EVER INDICATED A 100 PERCENT USE OF CAPACITY. CAPACITY UTILIZATION RATES A V E R A G E D ABOUT 83 PERCENT FOR MANUFACTURING FROM 1955 THFOUGH 1978, AND ABOUT 85 PERCENT FOR INDUSTRIAL MATERIALS FOR 1967 THROUGH 1978. IN MANUFACTURING AS A WHOLE, UTILIZATION RATES AS HIGH AS 90 PERCENT HAVE BEEN EXCEEDED ONLY IN WARTIME. THE PEAK RATES OF UTILIZATION IN 1973 WERE ASSOCIATED WITH SIGNIFICANT U P W A R D PRESSURE ON PRICES. SHE METHODOLOGY AND THE SERIES APE DESCRIBED IN FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY UTILIZATION. REVISED DATA ARE FOUND IN "CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS, J A N U A R Y 1967—DECEMBER 1978." BOTH PUBLICATIONS SAY BE r n TAINED FROM PUBLICATIONS SERVICES, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C. 20551
@FedFRASER