INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
Industrial production edged up 0.1 percent in March; revisions to earlier months left the level of the index in February little changed from that previously reported. In manufacturing, production remained unchanged in March and was just a bit above its December level. The output of mines decreased 0.7 percent reversing the February gain. The output of utilities increased 1.9 percent in March and has picked up noticeably, on balance, since last fall. At 132.8 percent of its 1992 average, total industrial production in March was 1.6 percent higher than it was in March 1998. For the first quarter as a whole, total industrial production increased at an annual rate of just 0.7 percent, down noticeably from the 2-1/4 percent gain in the fourth quarter. Overall capacity utilization slipped in March to 80.1 percent, a level 2 percentage points below its long-term average and 2-1/2 percentage points below its March 1998 level.
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted
| Index, 1992=100 | Percent change
| 1998 1999 | 1998 1999 | Mar. 98 to
Industrial Production | Dec. Jan. Feb. Mar. | Dec. Jan. Feb. Mar. | Mar. 99
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| | |
Total index | 132.3 132.3 132.6 132.8 | .1 -.1 .3 .1 | 1.6
Previous estimates | 132.4 132.4 132.6 | .2 .0 .2 |
| | |
Major market groups: | | |
Products, total | 124.4 124.5 124.6 124.6 | .0 .0 .1 .0 | 1.1
Consumer goods | 114.9 115.1 115.2 115.2 | .1 .2 .1 .0 | -.5
Business equipment | 167.9 167.1 167.2 166.9 | -.1 -.5 .1 -.2 | 4.2
Construction supplies | 131.0 132.5 131.8 131.0 | 1.1 1.2 -.5 -.6 | 5.1
Materials | 145.2 144.9 145.6 146.1 | .4 -.2 .5 .3 | 2.4
| | |
Major industry groups: | | |
Manufacturing | 136.7 136.5 137.0 137.0 | .2 -.1 .3 .0 | 2.2
Durable | 161.5 161.5 161.9 162.0 | .3 .0 .2 .1 | 4.4
Nondurable | 111.7 111.4 111.9 111.8 | .1 -.3 .4 -.1 | -.5
Mining | 99.0 97.4 98.0 97.3 | -2.1 -1.6 .7 -.7 | -8.0
Utilities | 111.8 114.0 113.2 115.4 | 1.1 2.0 -.7 1.9 | 1.3
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| | Capacity
| Percent of Capacity | Growth
| Average 1982 1988-89 1998 | 1998 1999 | Mar. 98 to
Capacity Utilization | 1967-98 Low High Mar. | Dec. Jan. Feb. Mar. | Mar. 99
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| | |
Total industry | 82.1 71.1 85.4 82.6 | 80.7 80.3 80.3 80.1 | 4.7
Previous estimates | | 80.7 80.4 80.3 |
| | |
Manufacturing | 81.1 69.0 85.7 81.6 | 80.0 79.6 79.5 79.3 | 5.2
Advanced processing | 80.5 70.4 84.2 80.6 | 79.0 78.3 78.4 78.2 | 6.2
Primary processing | 82.4 66.2 88.9 84.4 | 82.9 83.1 82.8 82.6 | 2.7
Mining | 87.5 80.3 88.0 88.4 | 82.0 80.6 81.0 80.4 | 1.1
Utilities | 87.4 75.9 92.6 90.5 | 88.2 89.9 89.2 90.9 | .8
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Note: Estimates for March are preliminary. Estimates from December to February are revised.
Market Groups
The production of consumer goods was flat in March, as a rebound in the production of energy goods was offset by declines in other categories. The 1/2 percent decline in the production of durable consumer goods was mainly caused by reductions in the output of automotive products and household appliances from the elevated levels reached earlier this year. The production of non-energy nondurable consumer goods was generally weak in March. A notable exception was the production of consumer chemicals, which increased for the second consecutive month after having declined, on balance, since the second quarter of 1998.
The output of business equipment decreased 0.2 percent in March and was 0.6 percent below its December level. Most of the recent declines in this market group have been concentrated in the production of industrial and transit equipment, which decreased again in March. In addition, the production of information processing equipment has risen more slowly in the first quarter after having expanded very rapidly in the fourth quarter of last year.
The production of construction supplies, which had increased sharply between the end of 1997 and January 1999, declined for a second month in March as the seasonal pickup in output was less than normal. The output of materials increased 0.3 percent mostly because of another large increase in semiconductors and computer parts. Although the production of basic metals edged up, it remained about 6 percent lower than in March 1998. The output of nondurable materials edged down in March largely because of a decline in textile materials. Nonetheless, the output of nondurable materials has firmed since December owing mainly to a pickup in the production of paper. The production of energy materials declined and has been weak, on balance, since last fall.
Industry Groups
Durable goods production edged up 0.1 percent in March: Increases in furniture and fixtures, metals, computer and office equipment, semiconductors, instruments, and miscellaneous manufactures were largely offset by declines in other durable goods industries. In particular, the output of transportation equipment decreased after having posted an increase in February, while the production of several types of industrial machinery continued to weaken. Nondurable goods production edged down 0.1 percent and was roughly unchanged from its December level. Increases in the production of tobacco, paper, chemicals, and rubber and plastic products were more than offset by declines in other industries; the largest losses occurred in textiles, apparel, and leather products, which were significantly below their March 1998 levels.
The operating rate in manufacturing declined to 79.3 percent --2-1/4 percentage points below its level a year earlier. The utilization rates for both advanced- and primary-processing industries decreased 0.2 percentage point. The utilization rate for mines declined 0.6 percentage point and remained well below its long-term average. The rebound in the output of utilities pushed the utilization rate up 1-3/4 percentage points to 90.9 percent, 3-1/2 percentage points above its long-term average.
G.17 Release Tables:
