INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION

Industrial production declined 0.1 percent in December. At 136.7 percent of its 1992 average, output in December was 5.8 percent below its level in December 2000. Manufacturing output decreased 0.1 percent, utilities production increased 0.4 percent, and the output at mines declined 0.8 percent. For the fourth quarter as a whole, total industrial production declined at an annual rate of 7.2 percent.

The rate of capacity utilization for total industry edged down 0.1 percentage point in December, to 74.4 percent. The industry operating rate fell 5.8 percentage points during 2001 to a level 7.7 percentage points below its 1967-2000 average.

 INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION:  SUMMARY
 Seasonally adjusted
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                               |                    1992=100                     |                  Percent change
                               | ----------------------------------------------- | -------------------------------------------------
                               |       2001                                      |   2001                          |    Dec. '00 to 
 Industrial production         |      Sept.        Oct.        Nov.        Dec.  |  Sept.    Oct.    Nov.    Dec.  |      Dec. '01 
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                               |                                                 |                                 |
  Total index                  |      138.5       137.5       136.9       136.7  |   -1.1     -.7     -.4     -.1  |           -5.8 
     Previous estimates        |      138.8       137.6       137.1              |    -.8     -.9     -.3          |                
                               |                                                 |                                 |
  Major market groups:         |                                                 |                                 |
  Products, total              |      127.7       126.6       126.5       126.2  |   -1.3     -.8     -.1     -.2  |           -5.5 
     Consumer goods            |      119.9       119.5       119.8       119.8  |   -1.2     -.4      .3      .0  |           -2.3 
     Business equipment        |      168.4       166.2       166.0       164.6  |   -2.8    -1.3     -.1     -.9  |          -13.0 
     Construction supplies     |      138.1       134.1       133.6       133.1  |    -.5    -2.9     -.4     -.4  |           -4.6 
  Materials                    |      156.5       155.6       154.3       154.3  |    -.6     -.6     -.9      .0  |           -6.2 
                               |                                                 |                                 |
  Major industry groups:       |                                                 |                                 |
  Manufacturing                |      142.9       141.8       141.5       141.3  |   -1.1     -.7     -.2     -.1  |           -5.9 
     Durable                   |      176.1       173.5       173.5       173.6  |   -1.6    -1.5      .0      .0  |           -7.9 
     Nondurable                |      110.5       110.6       110.0       109.7  |    -.5      .1     -.5     -.3  |           -3.3 
  Mining                       |      102.1       100.1        99.4        98.6  |     .6    -1.9     -.7     -.8  |           -2.3 
  Utilities                    |      118.1       118.8       116.2       116.7  |   -2.5      .6    -2.2      .4  |           -8.7 
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                               |                                                                                   |    Capacity
                               |                                Percent of capacity                                |     growth
                               | --------------------------------------------------------------------------------- | ---------------
                               |     Average        1982     1988-89       2000  |   2001                          |    Dec. '00 to 
 Capacity utilization          |  1967-2000          Low        High       Dec.  |  Sept.    Oct.    Nov.    Dec.  |      Dec. '01 
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                               |                                                 |                                 |
  Total industry               |       82.1        71.1        85.4        80.2  |   75.5    74.9    74.5    74.4  |            1.5 
     Previous estimates        |                                                 |   75.7    75.0    74.7          |                
                               |                                                 |                                 |
  Manufacturing                |       81.1        69.0        85.7        78.4  |   73.7    73.1    72.9    72.8  |            1.4 
     Advanced processing       |       80.5        71.0        84.2        77.6  |   73.3    72.7    72.8    72.6  |             .8 
     Primary processing        |       82.2        65.7        88.3        79.6  |   74.4    73.7    73.1    73.0  |            2.4 
  Mining                       |       87.6        80.3        88.0        90.2  |   90.9    89.1    88.4    87.7  |             .5 
  Utilities                    |       87.7        75.9        92.6        95.6  |   85.1    85.2    83.0    82.9  |            5.3 
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 Note:  Estimates for December are preliminary.  Estimates from September to November are revised.
 
 
 

Market Groups

The output of consumer goods was unchanged in December; during the fourth quarter, production declined at an annual rate of 4.8 percent, the largest quarterly decline since the end of 1990. Durable consumer goods rose 1.7 percent in December. For the second consecutive month, the output in every major category except miscellaneous durable goods increased. However, only the output of automotive products, which increased 3.1 percent in December, was above its year-ago level. Motor vehicle assemblies jumped to an annual rate of 12.3 million units in December, a half-million units above the pace in November and the highest rate since September 2000, when they reached 13 million units. Each major group of nondurable consumer goods declined in December, and the category overall decreased 0.5 percent. The output of consumer energy products declined 0.6 percent; distillate fuel oils and automotive gasoline decreased noticeably. The sales from utilities to residences picked up some in December, but warm weather restrained demand for a second month.

The production of business equipment fell 0.9 percent; although output in each major category of business equipment declined, the output of computing equipment rose for a second month. For the fourth quarter, business equipment dropped at an annual rate of 15.2 percent; a sharp contraction in the production of commercial aircraft contributed to a 28.0 percent drop in transit equipment.

The output of defense and space equipment ticked up 0.1 percent in December, the third increase in the past four months. A 0.4 percent decline in construction supplies was led by a large drop in construction steel; the index for business supplies rose 0.5 percent, reversing half of its decline in November. The output of construction supplies and of business supplies declined in each quarter of 2001.

The production of industrial materials was unchanged in December and was 6.2 percent below its year-ago level. In December, a 0.2 percent increase in durable materials production, led by higher output of parts for motor vehicles and of semiconductors, offset declines in the nondurable materials and energy materials groups.

Industry Groups

Manufacturing output decreased 0.1 percent in December. For the fourth quarter, manufacturing production declined at an annual rate of 7.1 percent. The factory operating rate edged down 0.1 percentage point in December, to 72.8 percent, a level 8.3 percentage points below its 1967-2000 average; during 2001, the operating rate fell 5.6 percentage points. For the second consecutive month, durable goods production was unchanged in December. Among durables, gains were led by a 4.1 percent increase in motor vehicles and parts. The output in high-technology industries also increased; gains in computer and office equipment and in semiconductors and related electronic components more than offset another large drop in communications equipment. The offsetting declines were largest in primary metals--particularly iron and steel--and in aerospace and miscellaneous transportation equipment. Among nondurables, only the rubber and plastics and the printing and publishing groups rose; declines were largest in tobacco products, petroleum products, apparel products, and paper products.

Production at mines fell 0.8 percent. The operating rate at mines decreased 0.7 percentage point, to 87.7 percent, a level 0.1 percentage point above its 1967-2000 average; during 2001, the operating rate fell 2.5 percentage points. A 0.4 percent increase in the output of utilities was led by a 1.2 percent rise in gas utilities. The operating rate at utilities declined 0.1 percentage point, to 82.9 percent. During 2001, it fell 12.7 percentage points to a level 4.8 percentage points below its 1967-2000 average.

G.17 Release Tables: