INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION

[2006 Revision Notice Below]

Industrial production rose 0.8 percent in June and was 4.5�percent higher than its year-ago level. Manufacturing output moved up 0.7 percent in June, and the May level was revised up. Output at mines and utilities also registered gains in June. In the second quarter, total output advanced at an annual rate of 6.6 percent, and manufacturing output rose at a 5.4 percent pace. Capacity utilization for total industry rose to 82.4 percent in June; the rate was 2.1 percentage points above its level in June 2005 and was 1.4 percentage points above its 1972-2005 average.

INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted

Industrial production	2002=100				Percent change
	2006				2006				June '05 to June '06
	Mar.	Apr.	May	June	Mar.	Apr.	May	June
Total index	111.2	112.2	112.3	113.2	.5	.8	.1	.8	4.5
Previous estimates	111.3	112.2	112.1		.5	.8	-.1
Major market groups
Final Products	113.0	113.7	113.8	114.8	.7	.6	.1	.8	4.7
Consumer goods	106.6	106.6	106.7	107.6	.7	.0	.1	.9	1.8
Business equipment	129.4	132.3	132.1	133.0	1.0	2.2	-.2	.7	12.3
Nonindustrial supplies	111.0	111.7	111.5	112.1	.5	.6	-.2	.6	4.4
Construction	113.6	113.9	113.2	113.6	-.1	.2	-.6	.4	6.3
Materials	109.5	110.7	111.1	112.0	.2	1.1	.3	.8	4.4
Major industry groups
Manufacturing (see note below)	113.3	114.2	114.3	115.2	.4	.8	.1	.7	5.7
Previous estimates	113.4	114.2	114.0		.5	.7	-.1
Mining	98.2	99.6	100.0	101.2	-.1	1.4	.3	1.2	.4
Utilities	105.6	105.9	106.2	106.9	1.7	.3	.2	.7	-1.2

Market Groups

The production of consumer goods rose 0.9 percent in June. The output of durable consumer goods moved up 2.2 percent and was led by an increase in the production of automotive products, which jumped 4.2 percent after having fallen in the previous two months. In the second quarter, the production of automotive products registered its first gain in three quarters. The output of home electronics increased for a second month in June and was up 10.4 percent from its year-ago level. The index for miscellaneous durable goods moved up, while the index for appliances, furniture, and carpeting dropped. The production of nondurable consumer goods rose 0.4 percent, as the output of consumer energy products gained 1.4 percent and the production of non-energy nondurable consumer goods edged up 0.1 percent. Output increased for all major categories of nondurable goods except foods and tobacco. In the second quarter, the output of non-energy nondurable consumer goods increased at an annual rate of 3.2 percent, while the output of consumer energy products advanced 11.6 percent.

The index for business equipment advanced 0.7 percent in June and at an annual rate of 13.2 percent in the second quarter, its twelfth consecutive quarterly rise. The production of transit equipment rose 0.8 percent in June, and the output of information processing equipment advanced 1.3 percent. The index for industrial and other equipment edged up after having fallen in May; output in this category increased at an annual rate of 11.9 percent in the second quarter. The production of defense and space equipment rose 0.9 percent in June.

The index for construction supplies increased 0.4 percent in June but was down at an annual rate of 0.9 percent in the second quarter. The index for business supplies increased 0.6 percent in June and moved up at an annual rate of 5.9 percent in the second quarter.

The production of materials advanced 0.8 percent in June, and the output of both energy and non-energy materials increased. Within non-energy materials, the output of durable materials rose 1.0 percent and at an annual rate of 7.8 percent in the second quarter. All of the major categories of durable materials posted gains in June. Among nondurable materials, a decline in the output of textiles was more than offset by increases in the production of paper and of chemicals.

Industry Groups

Manufacturing output rose 0.7 percent in June. In the second quarter, the index moved up at an annual rate of 5.4 percent, about the same rate as in the previous quarter. In June, the overall factory operating rate increased 0.4 percentage point, to 81.1 percent. The production of durable goods rose 1.0 percent and was led by a 3.3 percent gain in the output of motor vehicles and parts. Gains were widespread among the other major categories of durable goods, although the indexes for wood products and for furniture and related products fell. The production of computer and electronic products rose 1.3 percent, a slightly smaller gain than those recorded in the first two months of the second quarter. The output of aerospace and miscellaneous transportation equipment increased 0.7 percent in June. The index for primary metals moved up 1.0 percent and rose at an annual rate of 15.8 percent in the second quarter. The output of nondurable goods gained 0.3 percent in June; the largest contributors to the increase were petroleum and coal products, chemicals, and plastics and rubber products. The output of paper, printing and support, and apparel and leather advanced, while the indexes for food, beverage, and tobacco products and for textile and product mills declined. The output of non-NAICS manufacturing industries (publishing and logging) rose 1.2 percent.

The output of utilities increased 0.7 percent in June; both electricity generation and natural gas output increased by similar amounts. The operating rate at utilities rose to 86.8 percent. The output of mines increased 1.2 percent, and the utilization rate for mining advanced 1.2 percentage points, to 91.1 percent.

By stage of process, capacity utilization for industries in the crude stage moved up 1 percentage point, to 89.3 percent. For industries in the primary and semifinished stages, the operating rate rose 0.5 percentage point, to 83.3 percent, and for industries in the finished stage, utilization increased 0.3 percentage point, to 79.7 percent.

Notice

Revision of Industrial Production and Capacity Utilization

The Federal Reserve Board plans to issue an annual revision to the index of industrial production (IP) and the related measures of capacity and capacity utilization this fall; the publication date is yet to be determined. The revised IP indexes will incorporate data from the 2004 Annual Survey of Manufactures and from selected editions of the 2004 and 2005 Current Industrial Reports, all from the U.S. Census Bureau. Annual data from the U.S. Geological Survey regarding metallic and nonmetallic minerals (except fuels) for 2004 and 2005 will also be incorporated. The updating will include revisions to the monthly indicator for each industry (either product data or input data) and revisions to seasonal factors.

Capacity and capacity utilization will be revised to incorporate preliminary data from the Census Bureau's 2005 Survey of Plant Capacity, which covers manufacturing, along with new data on capacity from the U.S. Geological Survey, the Department of Energy, and other organizations.

Once the revision is published, it will be made available on the Board's website at www.federalreserve.gov/releases/G17. The revised data will also be available through the website of the Department of Commerce. Further information on these revisions is available from the Board's Industrial Output Section (telephone number 202-452-3197).

Note. The statistics in this release cover output, capacity, and capacity utilization in the U.S. industrial sector, which is defined by the Federal Reserve to comprise manufacturing, mining, and electric and gas utilities. Mining is defined as all industries in sector 21 of the North American Industry Classification System (NAICS); electric and gas utilities are those in NAICS sectors 2211 and 2212. Manufacturing comprises NAICS manufacturing industries (sector 31-33) plus the logging industry and the newspaper, periodical, book, and directory publishing industries. Logging and publishing are classified elsewhere in NAICS (under agriculture and information respectively), but historically they were considered to be manufacturing and were included in the industrial sector under the Standard Industrial Classification (SIC) system. In December 2002 the Federal Reserve reclassified all its industrial output data from the SIC system to NAICS.

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: Historical Statistics for IP, Capacity, and Utilization: Total Industry
Ascii	Screen reader	Table 12: Historical Statistics for IP, Capacity, and Utilization: Manufacturing
Ascii	Screen reader	Table 13: Historical Statistics for IP, Capacity, and Utilization: Total Industry excluding Selected High-Technology Industries
Ascii	Screen reader	Table 14: Historical Statistics for IP, Capacity, and Utilization: Manufacturing excluding Selected High-Technology Industries

Release dates | Historical data | Data Download |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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