INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
[2004 Revision Notice Below]
Industrial production increased 0.8 percent in December after gains of 0.2 percent in
November and 0.8 percent in October. In the manufacturing sector, output rose 0.7 percent in
December, and increases occurred in most major industry groups. The output of utilities jumped
2.7 percent, and the output at mines advanced 0.4 percent. Over the twelve months ending in
December, total industrial production increased 4.4 percent, to a level that is 117.8 percent of its
1997 average, while total industrial capacity expanded a modest 1.2 percent. The rate of
capacity utilization in December, at 79.2 percent, was 2.4 percentage points above its
year-earlier level but still 1.9 percentage points below its 1972-2003 average.
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted
Industrial production |
1997=100 |
Percent change |
2004 |
2004 |
Dec. '03 to Dec. '04 |
Sept. |
Oct. |
Nov. |
Dec. |
Sept. |
Oct. |
Nov. |
Dec. |
|
|
|
|
|
|
|
|
|
|
Total index |
115.7 |
116.6 |
116.8 |
117.8 |
-.3 |
.8 |
.2 |
.8 |
4.4 |
Previous estimates |
115.9 |
116.7 |
117.0 |
|
-.1 |
.7 |
.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Major market groups |
|
|
|
|
|
|
|
|
|
Final Products |
113.5 |
114.8 |
114.8 |
115.7 |
-.3 |
1.1 |
.0 |
.8 |
4.7 |
Consumer goods |
110.7 |
111.9 |
111.9 |
112.7 |
-.6 |
1.1 |
.0 |
.7 |
2.7 |
Business equipment |
121.1 |
122.8 |
122.5 |
123.6 |
.4 |
1.4 |
-.2 |
.9 |
9.8 |
Nonindustrial supplies |
112.8 |
113.3 |
113.2 |
114.2 |
-.1 |
.4 |
-.1 |
.9 |
4.4 |
Construction |
107.6 |
108.4 |
108.2 |
108.6 |
-.6 |
.7 |
-.1 |
.3 |
4.1 |
Materials |
118.9 |
119.5 |
120.1 |
121.2 |
-.3 |
.5 |
.5 |
.9 |
4.0 |
|
|
|
|
|
|
|
|
|
|
Major industry groups |
|
|
|
|
|
|
|
|
|
Manufacturing (see note below) |
117.7 |
118.8 |
118.9 |
119.7 |
-.4 |
.9 |
.1 |
.7 |
5.1 |
Previous estimates |
117.8 |
118.6 |
118.9 |
|
-.4 |
.7 |
.2 |
|
|
Mining |
89.4 |
89.5 |
91.4 |
91.8 |
-2.7 |
.0 |
2.2 |
.4 |
-.4 |
Utilities |
114.8 |
114.5 |
114.4 |
117.5 |
3.3 |
-.2 |
-.1 |
2.7 |
2.2 |
Capacity utilization |
Percent of capacity |
Capacity growth Dec. '03 to Dec. '04 |
Average 1972-2003 |
1982 Low |
1988-89 High |
2003 Dec. |
2004 |
Sept. |
Oct. |
Nov. |
Dec. |
|
|
|
|
|
|
|
|
|
|
Total industry |
81.1 |
70.8 |
85.1 |
76.8 |
78.0 |
78.5 |
78.6 |
79.2 |
1.2 |
Previous estimates |
|
|
|
|
78.1 |
78.6 |
78.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing (see note below) |
79.9 |
68.5 |
85.6 |
75.0 |
76.8 |
77.4 |
77.4 |
77.8 |
1.2 |
Previous estimates |
|
|
|
|
76.9 |
77.3 |
77.4 |
|
|
Mining |
87.1 |
78.6 |
85.8 |
87.0 |
84.6 |
84.7 |
86.6 |
87.0 |
-.4 |
Utilities |
86.9 |
77.7 |
92.8 |
86.2 |
84.8 |
84.5 |
84.3 |
86.5 |
1.9 |
|
|
|
|
|
|
|
|
|
|
Stage-of-process groups |
|
|
|
|
|
|
|
|
|
Crude |
86.4 |
77.3 |
88.9 |
85.1 |
84.3 |
84.5 |
85.8 |
86.4 |
-.2 |
Primary and semifinished |
82.2 |
68.0 |
86.5 |
78.9 |
79.7 |
79.8 |
79.8 |
80.6 |
2.1 |
Finished |
78.0 |
71.1 |
83.1 |
72.5 |
74.8 |
75.8 |
75.7 |
76.1 |
.3 |
r Revised. p Preliminary.
The statistics in this release cover output, capacity, and capacity utilization in the
industrial sector, which the Federal Reserve defines as manufacturing, mining, and electric and
gas utilities. Manufacturing comprises those industries included in the North American Industry
Classification System, or NAICS, manufacturing plus the logging and newspaper, periodical,
book and directory publishing industries that have traditionally been considered manufacturing and included
in the industrial sector.
Market Groups
The output of consumer goods rose 0.7 percent in December and increased at an annual
rate of 4.4 percent for the fourth quarter as a whole. In December, the index for consumer
nondurables increased 0.8 percent and received a significant boost from the output of consumer
energy products, which jumped 2.9 percent in December largely because of an increase in
residential sales of electricity. Among non-energy nondurables, the index for paper products
rose 1.2 percent while the indexes for clothing and for foods and tobacco moved up by smaller
amounts; these gains more than offset a second monthly decline in the index for chemical
products. The output of consumer durables rose 0.6 percent, as the index for automotive
products turned back up and the indexes for appliances, furniture, and carpeting and for
miscellaneous goods increased. The output of home electronics tumbled again and ended the
year nearly 8-1/2 percent below its level in December 2003.
The production of business equipment increased 0.9 percent in December and was nearly
10 percent above its year-earlier level; for the fourth quarter as a whole, this index rose at an
annual rate of 5.9 percent. The output of information processing equipment added another 1.0
percent in December, the fourth month of similarly sized gains. Industrial and other equipment
rose 1.3 percent; however, average output in the fourth quarter was little changed after having
risen sharply over the previous four quarters. The production of defense and space equipment
continued to climb in December, reaching a level 9.0 percent higher than a year earlier.
In December, nonindustrial supplies posted its largest one-month gain--0.9 percent--since
February, mainly because of a jump of 1.1 percent in the output of business supplies. The index
for materials also rose 0.9 percent; the rise in output in this category was supported both by a 1.3
percent gain for energy materials and by broad-based gains among durable and nondurable
materials categories.
Industry Groups
Manufacturing production increased 0.7 percent in December, and the factory operating
rate moved up 0.4 percentage point, to 77.8 percent, the highest rate of utilization since
December 2000. Nonetheless, the factory operating rate was still more than 2 percentage points
below its 1972-2003 average. In December, the production of durable goods increased 0.9
percent. The largest gain among the durable goods industries was in primary metals, in which
output rose 3.0 percent. The production of computer and electronic products registered a 1.2
percent gain, and its level was 16.4 percent higher than a year earlier. Among the selected
high-technology industries, the output of computer and peripheral equipment continued to
expand at a monthly pace of about 1-1/2 percent; increases in the production of semiconductor
and related electronic components strengthened for a second month in December after
decelerating, on balance, over the previous eight months. The indexes for most other major
categories of durable goods increased in December; the exceptions include wood products,
which moved down for a second month, and electrical equipment, appliances, and components,
which turned back down. The production of nondurable goods, which rose 0.3 percent, included
output gains of at least 1 percent for textile and product mills, paper, and petroleum and coal
products. Smaller production increases were posted in food, beverage, and tobacco products;
apparel and leather; and printing and support. The production of chemicals edged down, and the
output of plastics and rubber products was unchanged. Production in the non-NAICS
manufacturing industries (logging and publishing) jumped 1.2 percent.
In December, the higher level of utilities output reflected a 3.0 percent increase in the
output of electric utilities and a 1.3 percent rise in the output of natural gas utilities. The small
gain in mining output was primarily the result of increases in crude oil extraction and coal
mining. Capacity utilization for industries in the crude stage of processing rose 0.6 percentage
point, to 86.4 percent, a rate that is equal to its 1972-2003 average. The operating rate for
industries in the primary and semifinished stages increased 0.8 percentage point, to 80.6 percent,
and the utilization rate for finished goods producers increased 0.4 percentage point, to 76.1
percent.
Revision of Industrial Production and Capacity Utilization
On December 22, 2004, the Federal Reserve Board issued its annual revision to the index
of industrial production (IP), the related measures of capacity and capacity utilization, and the
data on industrial use of electric power. Comprehensive source data from the Census Bureau's
2002 Economic Census were incorporated into the production database. In addition to these
data, the revised IP indexes reflect data from selected editions of the Census Bureau's 2002 and
2003 Current Industrial Reports. Annual data from the U.S. Geological Survey regarding
metallic and nonmetallic minerals (except fuels) for 2002 and 2003 were also introduced. The
updating also included revisions to the monthly indicator for each industry (either physical
product data, production-worker hours, or electric power usage) and revisions to seasonal
factors.
Capacity and capacity utilization were revised to incorporate preliminary data from the
Census Bureau's 2003 Survey of Plant Capacity, which covers manufacturing, along with new
data on capacity from the U.S. Geological Survey, the U.S. Department of Energy, and other
organizations. The statistics on the industrial use of electric power incorporated additional
information received from utilities for the past few years and included available data from the
2002 Economic Census.
The revision is available on the Board's website at
www.federalreserve.gov/releases/G17. The revised data are also available through the website
of the Department of Commerce. Further information on these revisions is available from the
Board's Industrial Output Section (telephone 202-452-3197).
G.17 Release Tables:
Ascii | Screen reader | Summary: Industrial Production and Capacity Utilization |
Chart | | Chart 1: Industrial Production, Capacity, and Capacity Utilization | Chart | | Chart 2: Industrial Production and Capacity Utilization | Chart | | Chart 3: Industrial Production and Capacity Utilization, High Technology Industries | Ascii | Screen reader | Table 1:Industrial Production: Market and Industry Groups (percent change) |
Ascii | Screen reader | Table 2:Industrial Production: Special Aggregates and Selected Detail (percent change) |
Ascii | Screen reader | Table 3: Motor Vehicle Assemblies |
Ascii | Screen reader | Table 4: Industrial Production Indexes: Market and Industry Group Summary |
Ascii | Screen reader | Table 5: Industrial Production Indexes: Special Aggregates |
Ascii | Screen reader | Table 6: Diffusion Indexes of Industrial Production |
Ascii | Screen reader | Table 7: Capacity Utilization: Manufacturing, Mining, and Utilities |
Ascii | Screen reader | Table 8: Industrial Capacity: Manufacturing, Mining, and Utilities (percent change) |
Ascii | Screen reader | Table 9: Industrial Production: Gross Value of Products and Nonindustrial Supplies |
Ascii | Screen reader | Table 10: Gross-Value-Weighted Industrial Production: Stage-of-Process Groups |
Ascii | Screen reader | Table 11: Electric Power Use: Manufacturing and Mining |
Ascii | Screen reader | Table 12: Historical Statistics for IP, Capacity, and Utilization: Total Industry |
Ascii | Screen reader | Table 13: Historical Statistics for IP, Capacity, and Utilization: Manufacturing |
Ascii | Screen reader | Table 14: Historical Statistics for IP, Capacity, and Utilization: Total Industry excluding Selected High-Technology Industries |
Ascii | Screen reader | Table 15: Historical Statistics for IP, Capacity, and Utilization: Manufacturing excluding Selected High-Technology Industries |
Release dates | Historical data | Documentation
Current Monthly Release Other formats: ASCII | PDF (144 KB)
Supplemental Monthly Release Other formats: ASCII | PDF (144 KB)
Annual Revision Release Other formats: ASCII | PDF (150 KB)
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