INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
Industrial production fell 0.6 percent in February, its fifth consecutive monthly decline. Manufacturing output decreased 0.4 percent; it has fallen about 2-1/2 percent (not at an annual rate) since September. Excluding motor vehicles and parts, manufacturing output decreased 0.5 percent in February. Output at utilities dropped back 2.3 percent, and production in mining slipped 0.5 percent. At 146.0 percent of its 1992 average, industrial production was 1.2 percent above its February 2000 level. The rate of capacity utilization for total industry fell to 79.4 percent in February, its sixth consecutive monthly decline, and is 2.7 percentage points below its 1967-2000 average.
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted
| 1992=100 | Percent change
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| 2000 2001 | 2000 2001 | Feb. '00 to
Industrial production | Nov. Dec. Jan. Feb. | Nov. Dec. Jan. Feb. | Feb. '01
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| | |
Total index | 148.2 147.7 146.8 146.0 | -.3 -.3 -.6 -.6 | 1.2
Previous estimates | 148.2 147.4 147.0 | -.3 -.5 -.3 |
| | |
Major market groups: | | |
Products, total | 136.3 136.3 135.6 134.9 | .0 .0 -.5 -.5 | .5
Consumer goods | 122.4 122.8 121.7 121.2 | -.3 .4 -.9 -.5 | -1.3
Business equipment | 200.6 199.4 198.6 198.1 | .3 -.6 -.4 -.3 | 6.0
Construction supplies | 141.6 141.5 141.6 140.3 | -.5 .0 .0 -.9 | -2.2
Materials | 169.9 168.4 167.1 166.0 | -.7 -.9 -.8 -.6 | 2.2
| | |
Major industry groups: | | |
Manufacturing | 154.1 152.9 152.0 151.3 | -.5 -.8 -.6 -.4 | .9
Durable | 196.7 195.5 193.4 192.6 | -.4 -.6 -1.1 -.4 | 3.4
Nondurable | 115.5 114.4 114.4 113.9 | -.7 -1.0 .0 -.5 | -2.1
Mining | 101.1 100.2 102.3 101.8 | .9 -.8 2.1 -.5 | 2.7
Utilities | 121.9 129.8 125.5 122.6 | 1.6 6.4 -3.3 -2.3 | 2.6
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| | Capacity
| Percent of capacity | growth
| Average 1982 1988-89 2000 | 2000 2001 | Feb. '00 to
Capacity utilization | 1967-2000 Low High Feb. | Nov. Dec. Jan. Feb. | Feb. '01
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| | |
Total industry | 82.1 71.1 85.4 82.0 | 81.4 80.8 80.1 79.4 | 4.5
Manufacturing | 81.1 69.0 85.7 81.2 | 80.5 79.5 78.7 78.1 | 4.9
| | |
Advanced processing | 80.6 71.0 84.2 79.4 | 79.7 79.2 78.8 78.4 | 2.6
Primary processing | 82.2 65.7 88.3 85.2 | 82.8 81.1 79.7 78.8 | 8.5
Mining | 87.4 80.3 88.0 84.9 | 87.3 86.7 88.6 88.2 | -1.1
Utilities | 87.6 75.9 92.6 91.1 | 90.7 96.3 92.8 90.4 | 3.4
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Market Groups
The index for consumer goods fell 0.5 percent in February; the production of nondurables decreased 0.7 percent, while the output of durables rose 0.5 percent. The output of nondurable consumer goods was pulled down by declines in the production of clothing, foods and tobacco, paper products, and energy products. The production of consumer durables rebounded a bit; a downturn in motor vehicle output had contributed to a sharp drop-off during the previous four months.
The output of business equipment slipped 0.3 percent in February. The index for industrial and other equipment dropped 1.0 percent with declines in machinery and construction equipment more than offsetting a rise in farm equipment. The production of transit equipment, which had decreased considerably in the previous two months, fell 0.8 percent because of further cuts in the assembly of medium and heavy trucks. The output of information processing equipment posted a relatively small gain of 0.7 percent. The gains in this sector, which includes computers, have slowed, on balance, in recent months.
The output of construction supplies fell 0.9 percent in February after having been unchanged in the previous two months; the index is now 2.2 percent below its year-ago level. The output of materials dropped 0.6 percent, with similar declines posted for both durable and nondurable materials. Among durable materials industries, the output of semiconductors and related electronic components increased a modest 0.3 percent. However, the production of motor-vehicle-related parts and materials posted another large decline. Among nondurable materials, the output of textiles dropped 2.2 percent in February; declines in the output of paper and chemicals essentially reversed gains posted in January. The index for energy materials dropped 0.7 percent in February after two months of little change.
Industry Groups
Manufacturing output declined 0.4 percent in February, with similar decreases in the production of durable and nondurable goods; the losses were widespread. Among durable goods industries, the largest decreases came in stone, clay, and glass products, fabricated metal products, industrial machinery other than computers, and miscellaneous manufacturing. The output of motor vehicles and parts, which had fallen almost 22 percent (not at an annual rate) between September and January, was little changed in February. Among nondurables, a 1.3 percent rise in petroleum refining was the only significant increase.
The factory operating rate declined further in February, to 78.1 percent, which is 3.0 percentage points below its 1967-2000 average and the lowest level since late 1991. Capacity utilization in high-tech industries (computers, communications equipment, and semiconductors) dropped to 80.6 percent in February, or 9.4 percentage points below its July 2000 peak. The utilization rate for primary-processing industries fell 0.9 percentage point, to 78.8 percent, while that for advanced-processing industries dipped 0.4 percentage point, to 78.4 percent. The operating rate at utilities fell again, to 90.4 percent from the high rate of 96.3 percent recorded in December. The operating rate for mining declined slightly to 88.2 percent. New Release Format
This statistical release, the G.17, was redesigned beginning with the preceding issue. Special aggregates have been added. Although some detailed industry data no longer appear in the regular release, they continue to be available on the Federal Reserve Board's public web site (www.federalreserve.gov/releases/g17).
G.17 Release Tables:
