INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
[Annual Revision Notice Below]

Industrial production rose 0.2 percent in August after a downwardly revised increase of 0.6 percent in July. The downward revision in July primarily resulted from newly available data on the output of four industries within manufacturing: iron and steel, construction machinery, paper, and pharmaceuticals. The index for manufacturing output rose 0.2 percent in August after having advanced 0.7 percent in July; the step-down in the rate of increase reflected a fallback in the production of motor vehicles and parts, which had jumped sharply in July. Excluding motor vehicles and parts, manufacturing output increased 0.5 percent in August after having gained 0.2 percent in July. Production at mines moved up 1.2 percent in August, while the output of utilities moved down 1.5 percent. At 93.2 percent of its 2007 average, total industrial production in August was 6.2 percent above its year-earlier level. The capacity utilization rate for total industry rose to 74.7 percent, a rate 4.7 percentage points above the rate from a year earlier and 5.9 percentage points below its average from 1972 to 2009.

INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted

Industrial production	2007=100						Percent change
	2010						2010						Aug. '09 to Aug. '10
	Mar.[r]	Apr.[r]	May[r]	June[r]	July[r]	Aug.[p]	Mar.[r]	Apr.[r]	May[r]	June[r]	July[r]	Aug.[p]
Total index	91.0	91.4	92.4	92.5	93.1	93.2	.6	.4	1.1	.1	.6	.2	6.2
Previous estimates	91.0	91.3	92.5	92.5	93.4		.6	.4	1.3	-.1	1.0
Major market groups
Final Products	92.7	92.4	94.1	94.1	94.9	94.8	.8	-.4	1.8	.0	.9	-.1	6.1
Consumer goods	93.4	92.3	94.3	94.2	94.9	94.5	.5	-1.2	2.2	-.2	.8	-.4	4.4
Business equipment	89.3	90.9	92.2	92.9	93.8	94.4	1.0	1.8	1.4	.7	1.0	.7	9.9
Nonindustrial supplies	83.4	84.7	85.2	85.6	85.6	85.9	.7	1.6	.6	.5	.0	.3	4.0
Construction	76.1	79.4	79.3	79.4	79.1	79.7	2.3	4.3	-.1	.1	-.3	.8	5.0
Materials	92.1	92.8	93.4	93.4	94.0	94.3	.4	.8	.6	.0	.6	.4	7.1
Major industry groups
Manufacturing (see note below)	88.5	89.2	90.1	89.8	90.5	90.6	1.1	.8	1.0	-.4	.7	.2	6.3
Previous estimates	88.4	89.1	90.0	89.6	90.6		1.0	.8	1.1	-.5	1.1
Mining	98.9	100.5	99.7	99.1	100.0	101.2	1.4	1.6	-.8	-.6	.9	1.2	5.6
Utilities	99.0	95.3	99.2	103.1	102.8	101.2	-3.5	-3.8	4.1	4.0	-.3	-1.5	6.0

Market Groups

The output of consumer goods declined 0.4 percent in August after having risen 0.8 percent in July. In August, the index for consumer durables fell 3.0 percent, with decreases occurring in all of its major components. The output of automotive products recorded the largest drop, 5.2 percent, and the output of appliances, furniture, and carpeting declined 2.1 percent. The decreases in other categories were small. The production of nondurable consumer goods rose 0.3 percent; a gain of 1.0 percent in the non-energy category more than offset a decline in the energy category. Within non-energy nondurables, the indexes for foods and tobacco, for clothing, and for paper products each moved up more than 1.0 percent, and the index for chemical products increased 0.6 percent after having declined for four consecutive months. The production of consumer energy goods fell 2.2 percent in August.

The output of business equipment rose 0.7 percent in August after a gain of 1.0 percent in July. Among business equipment categories, the output of transit equipment increased 1.4 percent in August, and the indexes for information processing equipment and for industrial and other equipment recorded smaller gains. The production of transit equipment was boosted by an advance in the output of civilian aircraft. The index for defense and space equipment fell 0.3 percent after having jumped 1.9 percent in July.

The output of construction supplies rose 0.8 percent in August following a decline of 0.3 percent in July. The index for business supplies was unchanged in August; the output of non-energy business supplies increased 0.4 percent and offset a drop in the sales by utilities to commercial businesses.

In August, the production of materials rose 0.4 percent, and similarly sized gains were recorded in each of the major categories of this index. The output of durable materials moved up 0.4 percent; increases in equipment parts and in other durable parts outweighed a decline in consumer parts. Nondurable materials increased 0.4 percent; the indexes for chemical and paper materials rose, while the index for textile materials fell. The output of energy materials increased 0.3 percent, a gain that reflected a rise in crude oil extraction.

Industry Groups

Production in manufacturing rose 0.2 percent in August, and the factory operating rate moved up to 72.2 percent, a rate 7.0 percentage points below its 1972 to 2009 average. The output of durable goods edged down 0.1 percent, a decline that reflected a drop in the production of motor vehicles and parts following a sharp increase in July. The output of furniture and related products decreased 1.8 percent in August, but output in this category remained 2.2 percent above its year-earlier level. The indexes for nonmetallic mineral products and for miscellaneous manufacturing also declined. Among other durable goods industries, wood products; primary metals; fabricated metal products; and electrical equipment, appliances, and components recorded output gains of at least 1.0 percent, and the indexes for computer and electronic products and for aerospace and miscellaneous transportation equipment posted smaller increases.

The index for nondurable goods rose 0.5 percent in August, and gains were recorded for all components other than for textile and product mills and for petroleum and coal products. The largest increases among nondurables were for food, beverage, and tobacco products and for apparel and leather, both of which advanced by more than 1.0 percent. The output of textile and product mills fell 0.3 percent after having jumped 2.3 percent in July, and the output of petroleum and coal products declined 1.7 percent after having increased 1.1 percent in July. The index for other manufacturing (non-NAICS), which consists of publishing and logging, rose 0.9 percent.

Mining production moved up 1.2 percent in August, and the utilization rate rose to 86.3 percent, a rate 1.1 percentage points below its 1972 to 2009 average. The index for utilities fell 1.5 percent; the output of both electric and natural gas utilities declined. The operating rate for utilities fell 1.4 percentage points, to 81.0 percent.

Capacity utilization rates at industries grouped by stage of process were as follows: For the crude stage, utilization increased 0.9 percentage point, to 85.4 percent, a rate that was 1.1 percentage points below its 1972 to 2009 average; for the primary and semifinished stages, utilization edged down 0.1 percentage point, to 72.4 percent, a rate 9.2 percentage points below its long-run average; and for the finished stage, utilization increased 0.1 percentage point, to 73.5 percent, a rate 4.0 percentage points below its long-run average.

Revision of Industrial Production and Capacity Utilization

The Federal Reserve Board released its annual revision to the index of industrial production (IP) and the related measures of capacity and capacity utilization on June 25, 2010. In this revision, the base year for the IP index was advanced from 2002 to 2007, which lowered the level of the IP index for most periods. In addition to the new base, the revised IP indexes incorporated detailed data from the 2007 Economic Census and the 2008 Annual Survey of Manufactures, both conducted by the U.S. Census Bureau. Data from selected editions of the Census Bureau's 2008 and 2009 Current Industrial Reports have also been incorporated along with annual data from the U.S. Geological Survey regarding metallic and nonmetallic minerals (except fuels) for 2008. The revised indexes reflect updated price deflators from the Bureau of Economic Analysis. For this release, monthly indicators (either product data or input data) were revised, and the estimation methods for some series were changed. The new monthly production estimates reflect the incorporation of updated seasonal factors and monthly and quarterly source data that became available (or were revised) after the closing of the reporting window. Capacity and capacity utilization were revised to incorporate data from the Census Bureau's Quarterly Survey of Plant Capacity for the fourth quarters of 2008 and 2009, which covered manufacturing, along with new data on capacity from the U.S. Geological Survey, the Department of Energy, and other organizations.

The published revision release 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 the revision can be obtained 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