INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
[Annual Revision Notice Below]

Industrial production increased 0.4 percent in November after a decline of 0.2 percent in October. The rate of change for industrial production was revised down in October but up in September; the net effect of the revisions from June to October left the level of industrial production in October about the same as was previously reported. In the manufacturing sector, output advanced 0.3 percent in November with gains in both durables and nondurables. The gains among durable goods industries were particularly broad-based; only the production of motor vehicles and parts decreased substantially. Excluding motor vehicles and parts, overall factory output advanced 0.7 percent. The output of mines edged lower, but the output of utilities moved up 1.9 percent as the return of more seasonal temperatures boosted the demand for heating. At 93.9 percent of its 2007 average, total industrial production in November was 5.4 percent above its level a year earlier. The capacity utilization rate for total industry rose to 75.2 percent, a rate 5.4 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						Nov. '09 to Nov. '10
	June[r]	July[r]	Aug.[r]	Sept.[r]	Oct.[r]	Nov.[p]	June[r]	July[r]	Aug.[r]	Sept.[r]	Oct.[r]	Nov.[p]
Total index	92.6	93.4	93.6	93.7	93.5	93.9	.1	.8	.2	.1	-.2	.4	5.4
Previous estimates	92.6	93.3	93.5	93.4	93.4		.0	.8	.2	-.2	.0
Major market groups
Final Products	94.4	95.5	95.4	95.2	95.4	95.4	.0	1.1	-.1	-.2	.2	-.1	5.2
Consumer goods	94.4	95.6	95.3	94.9	94.7	94.2	.0	1.2	-.3	-.5	-.2	-.5	2.3
Business equipment	93.7	94.2	94.5	95.0	96.3	97.2	.7	.6	.3	.5	1.4	.9	12.5
Nonindustrial supplies	85.4	85.3	85.5	84.9	84.3	85.0	.2	-.1	.1	-.6	-.8	.9	2.8
Construction	79.6	78.8	79.4	79.0	79.1	79.8	.4	-1.0	.7	-.5	.1	.9	6.0
Materials	93.6	94.3	94.8	95.4	95.0	95.7	.1	.8	.5	.6	-.4	.7	6.4
Major industry groups
Manufacturing (see note below)	90.1	90.7	90.8	90.9	91.2	91.5	-.2	.7	.1	.1	.3	.3	5.3
Previous estimates	90.0	90.7	90.7	90.8	91.3		-.3	.7	.0	.1	.5
Mining	99.8	101.1	103.3	104.4	104.2	104.1	-.2	1.3	2.2	1.1	-.2	-.1	7.7
Utilities	101.6	102.5	101.3	100.0	96.3	98.2	2.5	.9	-1.1	-1.4	-3.7	1.9	2.5

Market Groups

The production of consumer goods fell 0.5 percent in November. The output of consumer durable goods moved down 2.3 percent in large part because of a drop of 6.0 percent in the production of automotive products. Production advanced for all of the other major durable goods categories: home electronics; appliances, furniture, and carpeting; and miscellaneous consumer durables. The output of nondurable consumer goods was unchanged in November following declines in the two previous months. Among non-energy nondurable goods, the indexes for foods and tobacco, for clothing, and for chemical products all posted declines, but the output of paper products moved up 0.3 percent. The production of consumer energy products rose 1.9 percent as a result of both higher sales to residences by utilities and an increase in gasoline refining.

The output of business equipment rose 0.9 percent in November and was 12.5 percent above its level a year earlier. The indexes for industrial and other equipment and for information processing equipment both rose about 1-1/4 percent. The production of transit equipment fell 0.6 percent, which more than reversed its October increase.

In November, the index for defense and space equipment moved up 1.5 percent--its second consecutive monthly increase.

The production indexes for construction supplies and business supplies both rose 0.9 percent in November. Over the 12 months ending in November, the output of construction supplies has moved up 6.0 percent, while the output of business supplies has increased 1.4 percent.

The production of materials increased 0.7 percent in November, which more than reversed the October decline. The output of durable materials advanced 0.9 percent, as a decline in the output of consumer parts was more than offset by gains in the production of equipment parts and other durable materials. The output of non-energy nondurable materials also rose 0.9 percent. Within this market group, the indexes for chemicals and paper advanced following declines in the previous month. However, the production of textile materials recorded its fourth consecutive monthly decline. The production of energy materials moved higher with the gains in utilities and in support activities for oil and gas operations more than offsetting a decline in crude oil extraction.

Industry Groups

Manufacturing production increased 0.3 percent in November. The factory operating rate moved up to 72.8 percent, its highest level in more than two years but still well below its long-run (1972 to 2009) average of 79.2 percent. The output of durable goods rose 0.4 percent, and with the exceptions of nonmetallic mineral products and motor vehicles and parts, output advanced in all of the major industries. Gains of 1 percent or more were reported in wood products, primary metals, fabricated metal products, machinery, computer and electronic products, and miscellaneous manufacturing. The production of nondurable goods rose 0.2 percent. Increases of 1 percent or more occurred in paper, printing and support, and plastics and rubber products. The indexes for petroleum and coal products and for chemicals both advanced around 0.5 percent. However, the production of food, beverage, and tobacco products declined and more than retraced the previous month's increase. The output indexes for textile and product mills and for apparel and leather both moved lower.

In November, the index for other manufacturing (non-NAICS), which consists of publishing and logging, fell 0.7 percent and was more than 7 percent below its year-earlier level. The output of mines edged down 0.1 percent in November, and the capacity utilization rate for mining moved down to 88.7 percent, a level 1.3 percentage points above its average from 1972 to 2009. The output of utilities rose 1.9 percent, as the output of both electric utilities and natural gas utilities increased. The operating rate for utilities rose, to 78.4 percent, but remained below its readings during the summer.

In November, capacity utilization rates at industries grouped by stage of process were as follows: For the crude stage, the operating rate increased 0.4 percentage point, to 88.6 percent, a rate that was 2.1 percentage points above its average from 1972 to 2009. For the primary and semifinished stages, utilization moved up 0.7 percentage point, to 71.6 percent, a rate 10.0 percentage points below its long-run average; and for the finished stage, utilization declined 0.3 percentage point, to 74.3 percent, a rate 3.2 percentage points below its long-run average.

Revision of Industrial Production and Capacity Utilization

The Federal Reserve Board plans to issue its annual revision to the index of industrial production (IP) and the related measures of capacity utilization in late March 2011. The revised IP indexes will incorporate detailed data from the 2009 Annual Survey of Manufactures, conducted by the U.S. Census Bureau. Data from selected editions of the Census Bureau's 2009 Current Industrial Reports and annual data from the U.S. Geological Survey regarding metallic and nonmetallic minerals (except fuels) for 2009 will also be incorporated. The update will include revisions to the monthly indicator (either product data or input data) and to seasonal factors for each industry. In addition, the estimation methods for some series may be changed. Any modifications to the methods for estimating the output of an industry will affect the index from 1972 to the present.

Capacity and capacity utilization will be revised to incorporate additional data from the Census Bureau's Quarterly 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 available on the Board's website at www.federalreserve.gov/releases/G17. 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