INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
Industrial production rose 0.2 percent in June, after gains of 0.5 percent in May and 0.8 percent in April. At 144.6 percent of its 1992 average, industrial production in June was 5.8 percent higher than in June 1999. For the second quarter as a whole, the total index increased at an annual rate of 7.0 percent, up from a first-quarter pace of 6.5 percent. The output of mines and utilities picked up in the second quarter, while the growth of manufacturing output remained close to an annual rate of 7.0 percent for a third consecutive quarter. The strength in manufacturing this year has principally come from the high-technology industries (computers, semiconductors, and communications equipment); excluding those industries, manufacturing has increased at an annual rate of only 1.0 percent since the fourth quarter of last year. The rate of capacity utilization for total industry edged down in June to 82.1 percent, a level about even with the 1967-99 average.
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted
| Index, 1992=100 | Percent change
| 2000 | 2000 | June 99 to
Industrial Production | Mar. Apr. May June | Mar. Apr. May June | June 00
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| | |
Total index | 142.4 143.5 144.3 144.6 | .6 .8 .5 .2 | 5.8
Previous estimates | 142.6 143.6 144.2 | .7 .7 .4 |
| | |
Major market groups: | | |
Products, total | 130.3 131.1 131.3 131.2 | .2 .6 .2 -.1 | 3.5
Consumer goods | 118.0 118.6 118.6 118.4 | -.6 .5 .0 -.1 | 1.3
Business equipment | 183.0 185.1 186.2 187.0 | 1.4 1.1 .6 .4 | 9.2
Construction supplies | 139.0 139.5 138.3 137.0 | 1.0 .4 -.9 -1.0 | 3.3
Materials | 163.1 164.9 166.6 167.8 | 1.2 1.1 1.0 .7 | 9.6
| | |
Major industry groups: | | |
Manufacturing | 148.4 149.3 150.0 150.5 | .8 .6 .4 .3 | 6.4
Durable | 184.6 186.7 188.4 189.7 | 1.5 1.1 .9 .7 | 10.2
Nondurable | 113.6 113.6 113.4 113.2 | -.2 .0 -.2 -.2 | 1.6
Mining | 101.3 101.5 101.3 102.4 | 1.3 .2 -.2 1.1 | 5.5
Utilities | 110.8 114.8 117.7 114.7 | -3.9 3.6 2.5 -2.5 | -2.3
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| | Capacity
| Percent of Capacity | Growth
| Average 1982 1988-89 1999 | 2000 | June 99 to
Capacity Utilization | 1967-99 Low High June | Mar. Apr. May June | June 00
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| | |
Total industry | 82.0 71.1 85.4 80.5 | 81.7 82.1 82.2 82.1 | 3.8
Previous estimates | | 81.8 82.1 82.1 |
| | |
Manufacturing | 81.1 69.0 85.7 79.6 | 81.1 81.3 81.3 81.3 | 4.2
Advanced processing | 80.5 70.4 84.2 78.6 | 80.2 80.5 80.8 80.9 | 5.4
Primary processing | 82.4 66.2 88.9 82.7 | 83.7 83.8 83.3 82.8 | 1.7
Mining | 87.3 80.3 88.0 80.7 | 84.7 85.0 84.9 85.9 | -.9
Utilities | 87.5 75.9 92.6 92.1 | 86.1 89.1 91.3 88.9 | 1.3
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Note: Estimates for June are preliminary. Estimates from March to May are revised.
Market Groups
The output of consumer goods edged down 0.1 percent in June; an increase of 0.5 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 was the result of a 1.7 percent rebound in the output of automotive products. In contrast, the output of other consumer durable goods decreased 0.5 percent, as the production of goods for the home, such as appliances, furniture, and carpeting, fell again. The decline in nondurable consumer goods was concentrated in energy products; the demand for electricity by households, which had shot up in April and May, fell back. The production of nondurable non-energy consumer goods edged up 0.1 percent, with solid gains in the production of consumer chemicals and paper products nearly offset by a decline in the output of clothing.
The production of business equipment, which had increased more than 1-1/4 percent per month from January to April, increased only 0.4 percent in June after a 0.6 percent advance in May. The production of high-technology equipment continued to rise strongly in June: The production of information processing and related equipment increased 1.3 percent on the strength of advances in the output of communications equipment and computers. The production index for the other equipment category also turned up sharply because of a jump in the output of farm machinery and equipment. However, the output of transit equipment fell again in June because of a continued decline in the production of commercial aircraft and a reduction in the production of medium and heavy trucks. In addition, the production of industrial equipment fell back 0.4 percent, largely reversing the gains in April and May; most of the decrease reflected a decline in the output of construction machinery.
The production index for construction supplies fell 1.0 percent in June after having decreased 0.9 percent in May; for both months, declines in underlying industries were widespread. Since peaking in April, the index for construction supplies has retraced more than half of the increase posted earlier in the year. The output of materials was up 0.7 percent in June, a gain somewhat smaller than the average for the preceding three months. The output of durable goods materials rose 1.2 percent, with another strong increase in the production of parts for equipment and for consumer goods; however, the output of basic metals fell again in June. The production of nondurable goods materials dropped 0.5 percent, and the output of energy materials was unchanged.
Industry Groups
Manufacturing output rose 0.3 percent in June, after having advanced an average of 0.6 percent per month since the end of last year. The production of durable goods rose further, and the production of nondurable goods declined again. Among durable goods, continued increases in the production of high-technology goods accounted for most of the overall gain; however, output in some industries, such as primary metals and construction-related industries, has weakened recently. The output of nondurables slipped another 0.2 percent, a move led by decreases in petroleum refining and in the production of apparel and paper.
The factory operating rate, at 81.3 percent, was unchanged. The utilization rate for primary-processing industries decreased, to 82.8 percent, and that for advanced-processing industries edged up, to 80.9 percent.
The output of utilities fell back 2.5 percent following sharp gains in the preceding two months; the operating rate at utilities fell to 88.9 percent. Production at mines increased 1.1 percent after having fallen 0.2 percent in May; the utilization rate at mines rose to 85.9 percent.
G.17 Release Tables:
