INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
Industrial production increased 0.3 percent in March after having increased an average of 1/2 percent in the previous three months. At 142.0 percent of its 1992 average, industrial production in March was 5.1 percent higher than in March 1999. For the first quarter as a whole, the total index increased at an annual rate of 6.4 percent, up from a gain of 5.3 percent in the fourth quarter. The acceleration in the first quarter reflects a rebound in the output of utilities, which had fallen sharply in the fourth quarter. Although manufacturing output expanded slightly less rapidly in the first quarter than in the fourth, it increased at a rate still well above the average for 1998 and 1999. The rate of capacity utilization for total industry edged down in March to 81.4 percent, a level about 1/2 percentage point below its 1967-99 average.
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted
| Index, 1992=100 | Percent change
| 1999 2000 | 1999 2000 | Mar. 99 to
Industrial Production | Dec. Jan. Feb. Mar. | Dec. Jan. Feb. Mar. | Mar. 00
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| | |
Total index | 140.1 141.5 141.6 142.0 | .5 1.0 .1 .3 | 5.1
Previous estimates | 140.2 141.7 142.1 | .5 1.1 .3 |
| | |
Major market groups: | | |
Products, total | 128.5 130.0 130.2 130.3 | .4 1.2 .1 .1 | 3.4
Consumer goods | 118.1 119.2 119.2 119.0 | .4 .9 .0 -.2 | 2.0
Business equipment | 175.5 179.4 180.0 181.5 | .3 2.2 .3 .9 | 8.4
Construction supplies | 134.9 136.5 136.6 136.5 | .5 1.1 .1 -.1 | 3.6
Materials | 159.7 160.8 161.0 162.0 | .5 .7 .1 .6 | 7.8
| | |
Major industry groups: | | |
Manufacturing | 145.6 146.8 147.0 147.6 | .4 .8 .1 .4 | 5.7
Durable | 178.4 181.0 181.2 182.5 | .6 1.4 .1 .8 | 8.6
Nondurable | 113.7 113.8 113.9 113.9 | .1 .0 .1 .0 | 1.9
Mining | 99.5 99.9 99.1 100.0 | -.2 .5 -.9 1.0 | 2.6
Utilities | 113.5 117.7 118.6 115.7 | 2.4 3.7 .8 -2.5 | -.9
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| | Capacity
| Percent of Capacity | Growth
| Average 1982 1988-89 1999 | 1999 2000 | Mar. 99 to
Capacity Utilization | 1967-99 Low High Mar. | Dec. Jan. Feb. Mar. | Mar. 00
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| | |
Total industry | 82.0 71.1 85.4 80.5 | 81.1 81.6 81.5 81.4 | 3.8
Previous estimates | | 81.1 81.7 81.7 |
| | |
Manufacturing | 81.1 69.0 85.7 79.6 | 80.3 80.7 80.6 80.6 | 4.3
Advanced processing | 80.5 70.4 84.2 78.5 | 79.2 79.7 79.5 79.5 | 5.2
Primary processing | 82.4 66.2 88.9 82.9 | 83.9 83.9 83.9 84.0 | 2.0
Mining | 87.3 80.3 88.0 80.9 | 82.8 83.3 82.7 83.6 | -.6
Utilities | 87.5 75.9 92.6 91.9 | 88.4 91.6 92.3 89.9 | 1.3
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Note: Estimates for March are preliminary. Estimates from December to February are revised.
Market Groups
The output of consumer goods edged down 0.2 percent in March, as an increase of 0.4 percent in the production of durable consumer goods was more than offset by a decline in the production of nondurables. The gain in the production of durable consumer goods mostly reflected a 0.7 percent rebound in the output of automotive products. The output of other consumer durable goods edged up 0.1 percent in February and March after having posted sizable gains in the previous two months. The production of nondurable non-energy consumer goods slipped 0.2 percent in March, as solid gains in the production of consumer chemicals and paper products were mostly offset by declines in the output of foods and tobacco and of clothing. The output of consumer energy products, which fell back 1.6 percent, was pushed down by a decrease in utilities' sales to residences.
The production of business equipment increased 0.9 percent, advancing at about the same pace that it had averaged in the previous three months. The production of information processing and related equipment increased 2.0 percent on the strength of gains in the output of communications equipment and computers. The production index for the "other equipment" category also posted a strong gain that reflected a sharp increase in the output of farm machinery and equipment; even so, output for this category has only partially recovered from its steep drop in the first half of last year. The output of transit equipment fell again in March because of continued declines in the production of commercial aircraft and reductions in the production of medium and heavy trucks. The production of industrial equipment fell back 0.7 percent, retracing the gain in February; some of the decrease reflected a decline in the output of construction machinery, which had posted substantial increases in the previous three months.
The production index for construction supplies edged down 0.1 percent and remains close to its recent peak in January; it was up 5.0 percent (annual rate) in the first quarter, a rise similar to the gain in the fourth quarter of last year. The output of materials was up 0.6 percent in March, slightly more than the average gain in the preceding three months. The output of durable goods materials rose 0.8 percent, with another strong increase in equipment parts, particularly semiconductors. The output indexes for nondurable goods materials and for energy materials rose 0.2 percent.
Industry Groups
Manufacturing output rose 0.4 percent in March, led by gains in the production of durable goods; the production of nondurable goods, which had risen sharply in the fourth quarter, has been little changed since the end of last year. Among durable goods, which accelerated to an annual rate of 9.7 percent in the first quarter, continued increases in the production of high-technology goods accounted for most of the overall gain. In particular, more rapid output of communications equipment contributed importantly to the acceleration. The output of nondurables advanced at an annual rate of only 1.6 percent in the first quarter. The production of food, paper, printing, and chemicals all decelerated between the fourth and first quarters.
The factory operating rate, at 80.6 percent, was unchanged. The utilization rate for primary-processing industries increased slightly, to 84.0 percent, while that for advanced-processing industries remained at 79.5 percent.
The output of utilities fell back 2.5 percent because of unseasonably warm weather; the operating rate at utilities fell to 89.9 percent. Mine production increased 1.0 percent, more than reversing the decline in February.
G.17 Release Tables:
