INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
Industrial production increased 0.4 percent in March, its first increase since September. At 146.5 percent of its 1992 average, industrial production in March was 0.8 percent higher than in March 2000. Manufacturing output rose 0.3 percent after a 0.3 percent drop in February; excluding motor vehicles and parts, manufacturing output edged down 0.1 percent in March. Output at utilities increased 1.1 percent, and production in mining rose 0.8 percent. For the first quarter as a whole, total industrial production contracted at an annual rate of 4.7 percent--the biggest quarterly decline since the first quarter of 1991; the index edged down at a 0.9 percent rate in the fourth quarter of 2000. The rate of capacity utilization for total industry moved up in March to 79.4 percent but remains at a level more than 2-1/2 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 | Mar. '00 to
Industrial production | Dec. Jan. Feb. Mar. | Dec. Jan. Feb. Mar. | Mar. '01
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| | |
Total index | 147.3 146.4 145.9 146.5 | -.6 -.6 -.4 .4 | .8
Previous estimates | 147.7 146.8 146.0 | -.3 -.6 -.6 |
| | |
Major market groups: | | |
Products, total | 136.0 135.5 134.9 135.4 | -.2 -.3 -.4 .4 | .7
Consumer goods | 123.1 122.1 122.0 122.3 | .6 -.8 -.1 .3 | .1
Business equipment | 199.2 198.2 196.2 197.9 | -.7 -.5 -1.0 .9 | 4.8
Construction supplies | 140.6 140.3 139.5 139.1 | -.7 -.3 -.5 -.3 | -3.8
Materials | 167.8 166.2 165.8 166.5 | -1.2 -1.0 -.2 .4 | 1.1
| | |
Major industry groups: | | |
Manufacturing | 152.6 151.8 151.3 151.8 | -1.0 -.5 -.3 .3 | .4
Durable | 195.1 192.7 191.9 193.6 | -.8 -1.2 -.4 .9 | 2.5
Nondurable | 114.1 114.6 114.4 114.0 | -1.2 .4 -.1 -.4 | -2.3
Mining | 99.6 100.7 101.1 101.9 | -1.5 1.1 .4 .8 | 1.5
Utilities | 129.1 124.4 121.8 123.1 | 5.9 -3.6 -2.0 1.1 | 7.3
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| | Capacity
| Percent of capacity | growth
| Average 1982 1988-89 2000 | 2000 2001 | Mar. '00 to
Capacity utilization | 1967-2000 Low High Mar. | Dec. Jan. Feb. Mar. | Mar. '01
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| | |
Total industry | 82.1 71.1 85.4 82.2 | 80.6 79.9 79.3 79.4 | 4.4
Manufacturing | 81.1 69.0 85.7 81.6 | 79.3 78.6 78.2 78.1 | 4.8
| | |
Advanced processing | 80.6 71.0 84.2 79.6 | 79.0 78.9 78.4 78.5 | 2.5
Primary processing | 82.2 65.7 88.3 85.9 | 80.9 79.3 78.8 78.6 | 8.4
Mining | 87.4 80.3 88.0 86.1 | 86.1 87.1 87.5 88.4 | -1.1
Utilities | 87.6 75.9 92.6 87.2 | 95.7 92.0 89.8 90.5 | 3.4
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Market Groups
The output of consumer goods rose 0.3 percent in March; an increase of 2.4 percent in the production of consumer durables more than offset a decline in the production of nondurables. The output of automotive products rose 5.7 percent; nonetheless, because of the sharp cutbacks during the fourth quarter of 2000 and earlier this year, output in March remained 6.7 percent below its year-ago level. The output of home electronics rose 2.7 percent, but the production of other consumer durables decreased. Among consumer nondurables, the production of non-energy consumer goods declined 0.4 percent; declines in the output of paper products, foods and tobacco, and clothing were only partly offset by a gain in the production of consumer chemicals. The output of consumer energy products, which had fallen in the preceding two months, rose 0.6 percent and was boosted by an increase in utilities' sales to residences.
The production of business equipment increased 0.9 percent in March after three months of declines. The output of transit equipment rebounded 4.5 percent because of gains in the production of autos, trucks, and commercial aircraft. The production of information processing and related equipment posted a relatively small increase of 0.7 percent. After having risen 23.1 percent last year, this index slowed to a 6.1 percent pace in the first quarter. The production of industrial and other equipment fell 0.3 percent in March, with declines in the output of construction equipment, electrical distribution equipment, and special industry machinery.
The production of construction supplies fell 0.3 percent further in March; for the first quarter, it dropped 5.1 percent at an annual rate, a decline close to that for the fourth quarter of last year. The output of materials was up 0.4 percent in March, the first gain since September. The output of durable goods materials rose 0.5 percent, led by an increase of 2.6 percent in the output of parts for consumer goods. Equipment parts (including the production of semiconductors and related electronic components) increased 0.5 percent in March and rose only 0.8 percent in the first quarter; output has decelerated steadily after having peaked at a 57.0 percent annual growth rate in the second quarter of last year. The output of nondurable goods materials slipped 0.2 percent in March, with declines in the production of textiles, paper, and chemical materials. The production of energy materials was up 0.8 percent.
Industry Groups
Manufacturing output rose 0.3 percent in March, the first increase since September, because of gains in the production of durable goods; the production of nondurable goods slipped 0.4 percent. Among durable goods, the largest increases were in the production of motor vehicles and parts and aerospace and miscellaneous transportation equipment. For the quarter, however, durable goods production fell at an annual rate of 7.4 percent, the largest drop since the first quarter of 1991. In March, declines in the output of nondurables were fairly widespread. The only exceptions were small increases in apparel products and chemicals.
The factory operating rate edged down, to 78.1 percent. The utilization rate for primary-processing industries decreased slightly, to 78.6 percent, while the rate for advanced-processing industries edged up, to 78.5 percent. Capacity utilization in high-technology industries (computers, communications equipment, and semiconductors) dropped for the eighth successive month, to 77.3 percent, a level 12.7 percentage points below its July 2000 peak. The operating rate at utilities rose to 90.5 percent. The operating rate for mining increased for the third consecutive month, to 88.4 percent.
New Format for the G.17
This statistical release was redesigned beginning with the February issue. Special aggregates were 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:
