INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
Industrial production contracted 0.8 percent in May, to 143.1 percent of its 1992 average. After eight consecutive months of decline, industrial production in May was nearly 3 percent below its level in May 2000. Manufacturing output declined 0.7 percent. Excluding motor vehicles and parts production, manufacturing dropped 0.9 percent; the sector has declined more than 4-1/4 percent since November 2000. Output at utilities fell 1.8 percent, and production in mining weakened 0.4 percent after a smaller decline in April. The rate of capacity utilization for total industry fell 3/4 percentage point, to 77.4 percent, more than 4-1/2 percentage points below its 1967-2000 average.
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted
| 1992=100 | Percent change
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| 2001 | 2001 | May '00 to
Industrial production | Feb. Mar. Apr. May | Feb. Mar. Apr. May | May '01
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| | |
Total index | 145.4 145.1 144.2 143.1 | -.4 -.2 -.6 -.8 | -2.8
Previous estimates | 145.5 145.3 144.9 | -.4 -.1 -.3 |
| | |
Major market groups: | | |
Products, total | 134.6 134.7 133.7 132.7 | -.3 .0 -.7 -.7 | -2.0
Consumer goods | 122.3 122.5 121.7 120.8 | .5 .1 -.6 -.8 | -2.2
Business equipment | 195.3 195.9 193.1 191.7 | -1.0 .3 -1.4 -.8 | .0
Construction supplies | 139.9 140.7 139.2 138.8 | -.5 .5 -1.0 -.3 | -3.0
Materials | 165.0 163.9 163.2 161.8 | -.5 -.6 -.4 -.9 | -3.9
| | |
Major industry groups: | | |
Manufacturing | 150.7 150.1 149.1 148.1 | -.4 -.5 -.6 -.7 | -3.3
Durable | 191.1 191.4 189.7 188.8 | -.7 .2 -.9 -.5 | -2.2
Nondurable | 114.0 112.6 112.3 111.2 | .0 -1.2 -.3 -1.0 | -4.7
Mining | 101.4 102.9 102.7 102.3 | .4 1.4 -.2 -.4 | 2.7
Utilities | 121.8 123.0 121.7 119.6 | -1.8 1.0 -1.0 -1.8 | -1.7
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| | Capacity
| Percent of capacity | growth
| Average 1982 1988-89 2000 | 2001 | May '00 to
Capacity utilization | 1967-2000 Low High May | Feb. Mar. Apr. May | May '01
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| | |
Total industry | 82.1 71.1 85.4 82.7 | 79.2 78.8 78.2 77.4 | 3.8
Manufacturing | 81.1 69.0 85.7 81.9 | 77.9 77.4 76.7 76.0 | 4.2
| | |
Advanced processing | 80.6 71.0 84.2 79.9 | 78.1 77.9 77.1 76.5 | 2.2
Primary processing | 82.2 65.7 88.3 86.4 | 78.6 77.5 77.0 76.3 | 7.6
Mining | 87.4 80.3 88.0 85.4 | 87.9 89.3 89.3 89.0 | -1.4
Utilities | 87.6 75.9 92.6 91.9 | 89.8 90.3 89.1 87.3 | 3.6
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Market Groups
Despite an upturn in the output of automotive products, the output of consumer goods dropped 0.8 percent in May, after a slightly smaller decline in April. The recovery from the automotive downturn that began in October of last year has been uneven, and production in May was still almost 6 percent below the level posted a year earlier. The output of consumer durables excluding automotive products contracted 0.5 percent, the fifth consecutive month of decline in that sector; declines occurred in industries producing appliances, office and computing equipment, and furniture. The production of consumer energy products dropped 1.7 percent. Residential electricity use decreased and, to a lesser extent, so did automotive gasoline production, which reversed one-third of its April jump. Production of nondurable consumer goods excluding energy, which has been sluggish over the past year, fell back 1.2 percent in May; losses were shared among producers of food, clothing, consumer chemicals, and paper products.
A decline of 0.8 percent in the output of business equipment put the level of production nearly 4-1/2 percent below the recent November peak. Output in many of the sector's industries fell, but transit equipment production rose 1.1 percent because of the increased production of light trucks and cars for business use. The output of industrial and other equipment fell 1.2 percent, and the losses were widespread. The output of information processing equipment dropped 1.0 percent further, as the production of communications equipment and computers continued their downward slide.
The production of intermediate products fell 0.6 percent in May; although the bulk of the decline can be attributed to scaled-back output of general business supplies, the production of construction supplies also remained weak. The production of materials fell back 0.9 percent in May, with similar-sized losses in durable, nondurable, and energy materials. The output of durable materials was notably held back by continued weakness in two industries: basic metals, in which output has contracted more than 14 percent since its September peak, and semiconductors and related electronic components, which has contracted more than 8 percent since its recent December peak. The output of nondurable goods materials fell 1.2 percent in May, with broad-based decreases. The production of chemical materials was reduced further, textile output fell significantly after having been little changed for several months, and the production of paper materials reversed some of its April increase. The 0.9 percent decline in the output of energy materials partly reflects a decline in utilities production.
Industry Groups
Manufacturing output fell 0.7 percent in May; after eight consecutive months of contraction, production in May was more than 4-1/2 percent below its level in September 2000. Production of durable goods declined 0.5 percent, with notable losses in the furniture, primary metals, and high-technology industries. Of the major industries, only lumber and motor vehicles and parts increased production in May; nonetheless, output indexes for both of these industries are still well below their levels in May of last year. The production of nondurable goods, which has been weak since the second half of 2000, declined 1.0 percent in May, to a level 4-3/4 percent below its May 2000 level. Losses were widespread and particularly significant in paper and paper products, printing and publishing, and chemicals. The production of petroleum products reversed nearly all of the April increase.
The factory operating rate edged down in May, to 76.0 percent. The utilization rate for primary-processing industries declined to 76.3 percent, while the rate for advanced-processing industries moved down to 76.5 percent. With the exception of the stone, clay, and glass industry and the petroleum products industry, most factory operating rates remain below their long-run averages. Capacity utilization in high-technology industries (computers, communications equipment, and semiconductors) dropped in May for the tenth successive month, to 70.3 percent, the lowest utilization rate posted for the high-tech sector in twenty-five years. The operating rate at utilities declined to 87.3 percent. The operating rate for mining edged down, to 89.0 percent.
G.17 Release Tables:
