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FEDERAL

RESERVE

statistical

release
For immediate release
September 19, 1977

CAPACITY UTILIZATION: MANUFACTURING AND MATERIALS
August 1977
Capacity utilization in manufacturing declined in August to 82.7 per
cent from a revised 83.2 per cent in July. The August decrease represents the
first monthly reduction since January. Most of the decline reflects curtailments of production in the advance processing sector, particularly in nonelectrical machinery and transportation equipment. Slowdowns in primary processing
industries producing nondurable goods also contributed to the over-all decline.
The materials capacity utilization rate decreased marginally in August
to 82.7 per cent. This rate now stands about 1 percentage point above its level
one year earlier and remains about 10 percentage points below its 1973 peak.
The measures of capacity utilization being published this month are
based on revised production indexes for the period beginning with January 1976.
In addition, the indexes of capacity for the primary processing, and the advanced
processing industries, and thus for manufacturing, for 1974 to date have been
revised slightly. The revised figures are provided in this release; for the
past year they appear on the backside of this sheet. Shown on the following two
pages are the revised data for the materials series for 1976 and for the manufacturing series for 1974 through 19760

INDUSTRIAL MATERIALS

MANUFACTURING
PER CENT

105
ENERGY
TOTAL

85

65
100
NONDURABLE GOODS
PRIMARY PROCESSING

80
ADVANCED PROCESSING

1965



1968

1971

1974

1977

1968

1971

1974

1977

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

Manufacturing
MONTHLY CAPACITY UTILIZATION

SERIES
MANUFACTURING, TOTAL

PRIMARY PROCESSING

19731
HIGHl
I
88.01

1
93.61
1

ADVANCED PROCESSING

1977

1976
AUG.

SEP.

69.6

81.1

80.5

79.9

68.1

83.0

83.6

62.4

1975

LOW

OCT.

NOV.
80.8

82.5

70.4

80.0

78.7

78.5

79.8

OUTPUT

129.3

81.2

MAR.

APR.

MAY.,

JUNE

„ JULY

AUG.

80.9

82.1

62.3

82.8

82.9

83.2

62.7

60.9

82.0

84.0

64.4

85.5

85.4

85.3

85.2

80.1

80.3

81.0

81.1

81.4

81.5

81.9

81.4

80.4

81. 8|

1

1976

MANUFACTURING, TOTAL

FEB.

DEC. JAN.

UTILIZATION

CAPACITY
1977

130.8

80. 8|

1976

1
131.21 133.1
1
|
138.81 140.1
1
127.21 129.3
|

1977

1977

1976

1
136.8

161.1

162. 8|

161.9

164.0

165.6

80.3

SO. 8

171.81
1
162.21
j

82.5

83.1

79.1

79.5

82.1

82.7

1

1
80.61
1
1
82.21
1
79.71
1

81.2

82.6

137.3

139.3

125.1

126.3

146.21 166.4
1
132.01 158.2
1

167.6

168. 8| 170.2
1
159. 6| 160.7
|

156.9

62.3

85.1

80.5

61.3

JUNE

PRIMARY PROCESSING
ADVANCED PROCESSING

JULY

AUG.

82.9

82.9

82.7

79.5

Industrial Materials
SERIES

MATERIALS, TOTAL

DURABLE GOODS MATERIALS
BASIC METAL MATERIALS

NONDURABLE GOODS MATERIALS
TEX., PAPER* C CHEM. MAT.
TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS

ENERGY MATERIALS

19731

1
93.11
1
1
92.51
1
97.71
1
1
94.61
1
94.5)
1
94. 4 1
100.51
93.81
1
1
94.6|
1

MONTHLY CAPACITY UTILIZATION
1
1977

1975

1976

69.7

81.6

81.0

80.4

80.3

64.3

78.9

77.6

76.6

76.4

83.5

79.0

77.7

73.1

72. 5|

67.8

84.8

85.3

85.0

64.6

83. 5|

65.5

83.6

64.3

84.1

83.2

82.4|

58.0

82.2
90.1
82.2

81.8

80.2

78.2

69.2
83.8

89.5
83.7

68.6
83.3

80. 6|
86. 1
|
81. 8|

64.7

84.1

82.7

83.7

78.7

79.4

79.8

79.8

78.4

79.3

81.2

80.2

77.6

82.7
81.5

85.7

87.0

87.0

87.7

87.2

87.0

83.8

85.9

86.0

86.7

86.3

66.6

86.0

78.7

77.7

79.9

78.8

78.8

76.7

77.6

85.9
81.3

89.6
84.0

89.7
86.6

88.3
87.5

90.7
87.9

89.2
88.2

88.6
87.8

130.8

113.5

117.4

147.0

146.3

151.8

150.8

116.5
132.0
175.3

115.1
130.8
174.4

119.0

119.6

84.1

84.7

85. 5|

85.5

83.7

84.4

83.9

84.5

85.4

85.7

|
CAPACITY

1977

II
I

126.9

NOTE:

77.8

72.9

j
j

BASIC METAL MATERIALS

ENERGY MATERIALS

76.0

1
71.8

DURABLE GOODS MATERIALS

TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS

73.7

1

132.5

TEX., PAPER, C CHEM. M A T .

81.6

1
1

130.5

NONDURABLE GOODS MATERIALS

75.6

80.2

1

1976

MATERIALS, TOTAL

1
79. H
I
1

76. 5|

66.1

OUTPUT

I
I

80.2|

IV

I
1
131.91 133.1
1
|
128.41 129.2
1
107.41 108.6
I
146.91
1
151.41
|
112.11
130.21
177.31
1
1
122.01
1

149.5
153.9
111.3
131.7
181.6

122.0

I
| 1976
III
II
III
IV
1
1
137.61 161.7
163.1
164.31
I
1
1
I
135.01 165.5
166.7
167. £ |
1
1
116.41 143.1
143.7
144. 4|
1
1
1
1
154.71 171.0
172.5
174. 1|
1
I
160.01 178.3
180.1
182.01
1
4
110.91 139.0
139.8
140. 6|
134.31 145.7
146.7
147. 9|
192.11 208.7 211.2
213.7f
1
1
i
1
122.51 141.5
142.7
143. 9|
1
1

1977

I
165.5

169.0
144.8

175.6
183.6
141.4
148.9
216.2

144.3

1
1
II I
1
166.61
1
1
170.31
|
145.11
|
|
177.21
1
185.4|
1
141.9J
150.11
218.71
1
1
144.71
J

ESTIMATES OF ACTUAL OUTPUT AND CAPACITY OUTPUT ARE BOTH EXPRESSED AS PERCENTAGES OF 1967

85.7

UTILIZATION
1977

1976

1
1
80.7

II
I
81.2

76.7

78.4

79.3

81.7

85.9

84.8

85.2

83.7

83.8

82.4

90.6

89.2

84.0

62.6

84.1

83.8

ACTUAL OUTPUT.

I

IV
1
80.31
1
1
76.5|
1
74.4|
1
|
64.4|
|
83.21
1
79.71
88.11
83.01
1
I
84.81
1

I
I

80.4

82.6

76.5

79.3

75.0

80.2

85.1

67.3

63.8

86.3

78.7
84.0

76.1
89.5
87.9

84.5

84.6

88.4

ESTIMATES OF

CAPACITY UTILIZATION IN PER CENT ARE C A L C U L A T E D AS RATIOS OF (1) THE INDEXES OF INDUSTRIAL PRODUCTION TO (2) THE CORRESPONDING INDEXES OF CAPACITY. INDUSTRIAL M A T E R I A L S ARE THOSE CRUDE AND S E M I F I N I S H E D PRODUCTS THAT ARE BOTH PRODUCED AND USED
AS INPUTS BY INDUSTRIAL ESTABLISHMENTS; THE INDUSTRIAL M A T E R I A L S INCLUDE MOST OF THE COMPONENTS OF THE PRIMARY PROCESSING
GROUPING OF MANUFACTURING AS W E L L AS THE INPUTS SUPPLIED TO THE INDUSTRIAL SECTOR BY MINES AND UTILITIES—SUCH AS IRON ORE,
CRUDE OIL, AND INDUSTRIAL ELECTRICITY. THE 1973 HIGHS (AND ALSO 1975 LOWS) IN CAPACITY UTILIZATION, SHOWN IN THE TABLES
ABOVE, ARE SPECIFIC TO EACH SERIES AND MAY OCCUR IN D I F F E R E N T MONTHS.
BUSINESSES USUALLY OPERATE AT CAPACITY UTILIZATION R A T E S THAT ARE W E L L BELOW 100 PER CENT; NONE OF THE BROAD AGGREGATE SERIES
HAS EVER INDICATED A 100 PER CENT USE OF CAPACITY. CAPACITY UTILIZATION RATES AVERAGED ABOUT 83 PER CENT FOR MANUFACTURING
FROM 1955 THROUGH 1975, AND ABOUT 86 PER CENT FOR INDUSTRIAL M A T E R I A L S FOR 1967 THROUGH '1975. IN MANUFACTURING AS A WHOLE,
UTILIZATION RATES AS HIGH AS 90 PER CENT HAVE BEEN EXCEEDED ONLY IN W A R T I M E . THE PEAK R A T E S OF UTILIZATION IN 1973 W E R E
ASSOCIATED WITH SIGNIFICANT U P W A R D PRESSURES ON PRICES.
THE CAPACITY U T I L I Z A T I O N ESTIMATES ARE DESCRIBED, AND HISTORICAL DATA ARE PROVIDED, IN THE N O V E M B E R 197.6 ISSUE OF THE FEDERAL
RESERVE BULLETIN. THE PRODUCTION FIGURES ARE DESCRIBED IN THE JUNE 1976 ISSUE OF THE BULLETIN; CURRENT ESTIMATES ARE
PUBLISHED IN THE F E D E R A L R E S E R V E STATISTICAL RELEASE, INDUSTRIAL PRODUCTION. G.12.3.




OUTPUT, CAPACITY, AND CAPACITY UTILIZATION*/
Revised Data for 1974-76
MANUFACTURING
JAN.

FEB.

MAR.

APR.

Monthly Utilization
MAY
JUNE
JULY

AUG.

SEP.

OCT.

NOV,

DEC.

1974
1975
1976

86.0
72.5
78.1

85.5
70.7
79.4

85.7
69.6
79.8

85.4
76.5
79.9

85.9
70.9
80.5

86.1
72.6
80.5

85.8
73.9
80.8

85.6
75.5
81.1

85.3
76.4
80.5

83.4
76.2
79.9

8Q.Q
77. Q
80. a

75,7
77.4
81,2

Primary Processing

1974
1975
1976

91.2
71.6
79.3

90.2
69.9
81.5

90.3
68.1
82.1

90.0
69.3
82.2

90.1
70.1
82.5

90.3
71.8
82.9

89.8
73.8
82.7

89.2
76.4
83.0

88.8
78.6
83.6

86.0
78.2
82.4

81,5
78.9
82.5

74.7
78.5
81.8

Advanced Processing

1974
1975
1976

83.1
72.5
77.3

82.9
71.1
78.3

83.0
70.4
78.5

82.4
71.1
78.6

83.6
71.8
79.4

83.7
72.9
79.2

83.5
74.0
79.9

83.5
75,1
80.0

83.3
75.3
78.7

81.9
75.1
78.5

79.6
75.9
79.8

75.9
76.8
80.8

IV

I

SERIES AND YEAR
Manufacturing, Total

I

Quarterly Output
II
III

Quarterly Capacity
III
II

IV

I

Quarterly Utilisation
II
III

XV

1974 130.1
1975 111.2
1976 126.7

131.3
112.4
129.3

132.1
119.4
130.8

124.1
122.5
131.2

151.8
156.8
160,2

153.1
157.7
161.1

154.4
158.5
161.9

155.7
159.4
162.8

85.7
70.9
79.1

85.8
71.3
80.3

85.5
75,3
80.8

79.7
76.9
80,6

Primary Processing

1974 140.4
1975 112.4
1976 133,8

141.1
114.0
137.3

141.2
124.3
139.3

128.8
128.9
138.8

155.1
160.9
165.2

156.6
16?. 0
166.4

158.1
163.0
167.6

159.6
164.1
168.8

90.6
69.9
81.0

90,1
70.4
82.5

89.3
76,3
83.1

80,7
78.6
82.2

Advanced Processing

1974 124.5
1975 110.3
1976 122.9

127.2
121.6
125.9
111.8
116.8
119.1
127.2
125.1
126.3
of 1967 output; ca?

150.0
154.7
157.5

151.2
155.4
158.2

152.5
156.1
158.9

153.7
156.8
159.6

83.0
71.3
78.0

83,3
71.9
79.1

83.5
74,8
79,5

79.1
75.9
79.7

Manufacturing, Total




OUTPUT, CAPACITY AND CAPACITY UTILIZATION
Output and Capacity are Percentages of T967 Output; Capacity Utilization is a Per Cent of Capacity.

REVISED DATA FOR 1976

Industrial Materials
MONTHLY CAPACITY UTILIZATION
SERIES

19731

1975

| 1977

1976
OCT.

.MATERIALS, TOTAL
DURABLE GOODS MATERIALS
BASIC METAL MATERIALS
NONDURABLE GOODS MATERIALS
TEX., PAPER, t.CHEM. MAT,
TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS
ENERGY MATERIALS

1
93*11
1
1
92.51
1
97.71
1
1
94.61
1
94.51
1
9.|
44

8.
04

8.
03

80.21
1
1
7.|
65
1

7.
94

80.1

8.
04

8.
09

80.7

6.
43

72.2

7.
42

75.1

7.
59

76.9

77.2

7.
88

7.
89

77.8

7.
66

7.
64

66.1

7.
18

7.
43

76.2

7.
76

80.2

80.2

82.6

83.5

7.
90

77.7

73.1

81.2

81.6

67.8

8.
45

85.5

86.6

8.
64

8.
60

85.4

8.
44

84.8

85.3

65.0

8.
46

65.5

83.8

8.
48

86.5

8.
60

85.0

84.5

83.1

63.6

84.3

84.1

83.2

56.0

80.2
89.5
83.7

78.2
8.
86
83.3

84.1

8.
47

71.8

93.81
1
1
94.61
1

6.
47

8.
56
8.
79
82.2

8.
40
8.
97
83.6

83.3
91.7
86.1

63.8
9.
09
85.2

8.
48
9.
05
83.5

82.8
90.5
83.3

83.1
88.2
61.9

82.2
9.
01
82.2

81.6
8.
92
83.8

8.
27

86.3

85.5

8.
48

8.
40

8.
44

83.9

83.4

84.1

83.7

122.8

1976
I '

II

127.3 130.5
,

III

132.5

DURABLE GOODS MATERIALS

115.1

121.3 1 6 9
2.

130.8

BASIC METAL MATERIALS

9.
64

105.5 113.5

117.4

NONDURABLE GOODS MATERIALS

141.4

149
4.

TEX., PAPER, C CHEM. MAT.

163
4.

150.2 151.8

150.8

118.2
124.0
167.7

116.5 116.5
129.8 1 2 0
3.
173.1 175.3

115.1
130.8
144
7.

118.5

120.0 119.0

119.6

ENERGY MATERIALS

81.0

7 .
8 3

100.51

1975
IV

TEXTILE MATERIALS
PAPER MATERIALS
CHEMICAL MATERIALS

DEC.I JAN.

6.
97

OUTPUT

MATERIALS, TOTAL

NOV.

170
4.

163
4.

1
I 1975
1VI
IV
1
131.91 159.2
1
|
128.41 163.1
1
1 7 4 141.7
0.|
1
1
146.91 1 7 8
6.
1
151.4) 1 4 7
7 .
1
112.11 137.2
130.21 143.5
177.31 203.7
1
1
122.01 139.1

CAPACITY
1976

1
1

72.5J

7.
94
7.
56
7.
37

1
1
63.51 6 .
27
1
8 . | 81.5
24
j
80.61 7 .
87
86.11 8 .
59
81.81 81.3
1
1
85.51 8 .
55
|

UTILIZATION

1975

1976

77.1

79.3

8.
07

81.2

8.
03

7.
06

73.8

7.
67

7.
84

7.
65

6.
94

7.
41

7.
93

81.7

7.
44

174.11

8.
43
|
83.8
|
140.61 86.2
64
147.91 6 .
213.71 82.3
1
1
143k9| 85.2

8.
56

8.
59

6.
46

8.
44

162.01

85.1

85.2

83.7

63.2

8.
43
6.
98
6.
40

83.8
90.6
8.
40

8.
24
8.
92
8.
26

7.
97
8.
81
8.
30

85.6

64.1

83.8

8.
48

1
106
6.

161.7

163.1

164.31

1
1
144
6.

165.5

167
6.

167.81

142.4

143.1

143.7

144.41

1
1
1
194
6.

171.0

172.5

165
7.

178.3

180.1

138.2
144.6

139.0
145.7

262
0.

2 6 7
0 .

139.8
146.7
211.2

140.3

141.5

142.7

ESTIMATES OF ACTUAL OUTPUT AND CAPACITY OUTPUT ARE BOTH EXPRESSED AS P E R C E N T A G E S OF 1967 ACTUAL OUTPUT. ESTIMATES OF
C A P A C I T Y UTILIZATION IN PER CENT ARE CALCULATED AS R A T I O S OF (I) THE INDEXES OF INDUSTRIAL PRODUCTION TO (2) THE CORRESPONDING INDEXES OF CAPACITY, INDUSTRIAL M A T E R I A L S ARE THOSE CRUDE AND SEMIFINISHED PRODUCTS THAT ARE BOTH PRODUCED AND USED
AS INPUTS BY INDUSTRIAL ESTABLISHMENTS; THE INDUSTRIAL M A T E R I A L S INCLUDE MOST OF THE COMPONENTS OF THE PRIMARY PROCESSING
GROUPING OF MANUFACTURING AS WELL AS THE INPUTS SUPPLIED TO THE INDUSTRIAL SECTOR BY MINES AND UTILITIES—SUCH AS IRON ORE,
CRUDE OIL, AND INDUSTRIAL ELECTRICITY. THE 1973 HIGHS (AND ALSO 1975 LOi<S» JN CAPACITY UTILIZATION, SHOWN IN THE TABLES

A v

?° ** J5,*,s5!g?$c \$ I^VWBM^^

;

BUSINESSES USUALLY OPER&E AT CAPACITY UTILIZATION RATES THAT ARE W E L L BELOW 100 PER CENT; NONE OF THE BROAD AGGREGATE SERIES
HAS EVER INDICATED A 100 PER CENT USE OF CAPACITY. CAPACITY UTILIZATION RATES AVERAGED ABbUT 83 PER CENT FOR MANUFACTURING
FROM 1955 THROUGH 1975, AND ABOUT 86 PER CENT FOR INDUSTRIAL M A T E R I A L S FOR 1967 THROUGH 1975. IN MANUFACTURING AS A WHOLE,
UTILIZATION RATES AS HIGH AS 90 PER CENT H A V E BEEN EXCEEDED ONLY IN W A R T I M E . THE PEAK RATES OF UTILIZATION IN 1973 WERE
ASSOCIATED WITH SIGNIFICANT UPWARD PRESSURES ON PRICES.
THE C A P A C I T Y UTILIZATION ESTIMATES ARE DESCRIBED, AND HISTORICAL D A T A ARE PROVIDED, IN THE NOVEMBER 1976 ISSUE OF THE FEDERAL
RESERVE BULLETIN. THE PRODUCTION FIGURES ARE DESCRIBED IN THE JUNE 1976 ISSUE OF THE BULLETINS CURRENT ESTIMATES ARE
PUBLISHED IN THE FEDERAL R E S E R V E STATISTICAL RELEASE, INDUSTRIAL p^QQUCJLLDJi, G.12.3.