Industrial Production and Capacity Utilization - G.17

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Release Date: March 17, 2022
Revision of Industrial Production and Capacity Utilization Notice Below

Total industrial production rose 0.5 percent in February to a level that is 103.6 percent of its 2017 average. Manufacturing output increased 1.2 percent after having been little changed in each of the previous two months. In February, the index for utilities declined 2.7 percent, and the output of mines edged up 0.l percent.

Total industrial production in February was 7.5 percent higher than its year-earlier level, but severe winter weather in February 2021 significantly suppressed industrial activity that month. A more useful comparison shows that the index has advanced a still-strong 4.2 percent since January 2021. Capacity utilization for the industrial sector increased 0.3 percentage point in February to 77.6 percent, a rate that is 1.9 percentage points below its long-run (1972–2021) average.

Industrial Production and Capacity Utilization: Summary
Seasonally adjusted
Industrial production 2017=100 Percent change
2021 2022 2021 2022 Feb. '21 to
Feb. '22
Sept.[r] Oct.[r] Nov.[r] Dec.[r] Jan.[r] Feb.[p] Sept.[r] Oct.[r] Nov.[r] Dec.[r] Jan.[r] Feb.[p]
       
Total index 99.9 101.2 102.0 101.6 103.0 103.6 -1.2 1.4 .8 -.4 1.4 .5 7.5
Previous estimates 99.8 101.2 102.1 102.0 103.5   -1.2 1.4 .9 -.1 1.4    
       
Major market groups
Final Products 100.1 100.8 101.7 101.2 102.9 103.4 -.9 .8 .8 -.4 1.7 .4 5.5
Consumer goods 99.6 99.9 100.7 100.1 102.5 102.1 -.9 .3 .9 -.7 2.4 -.4 3.5
Business equipment 94.2 95.2 95.8 95.6 95.1 97.0 -.9 1.1 .6 -.1 -.5 1.9 6.2
Nonindustrial supplies 97.9 98.8 100.0 99.6 100.4 101.3 .2 .9 1.2 -.4 .8 .9 7.5
Construction 101.0 102.3 104.3 104.9 103.9 105.6 1.2 1.4 1.9 .6 -1.0 1.6 8.8
Materials 100.2 102.3 102.9 102.5 103.9 104.4 -2.0 2.1 .6 -.4 1.3 .5 9.4
       
Major industry groups
Manufacturing (see note below) 98.2 99.9 100.5 100.3 100.4 101.5 -.8 1.7 .5 -.1 .1 1.2 7.4
Previous estimates 98.2 99.9 100.6 100.4 100.7   -.8 1.7 .7 -.1 .2    
Mining 104.6 108.5 109.1 109.0 110.4 110.5 -2.1 3.7 .5 -.1 1.3 .1 17.3
Utilities 103.1 99.3 102.2 99.6 109.9 106.9 -2.9 -3.6 2.8 -2.6 10.4 -2.7 -1.2

Capacity utilization Percent of capacity Capacity
growth
Average
1972-
2021 		1988-
89
high 		1990-
91
low 		1994-
95
high 		 
2009
low 		 
2021
Feb. 		   
2021 2022 Feb. '21 to
Feb. '22
Sept.[r] Oct.[r] Nov.[r] Dec.[r] Jan.[r] Feb.[p]
       
Total industry 79.5 85.2 78.8 85.1 66.6 72.7 75.1 76.1 76.6 76.3 77.3 77.6 .6
Previous estimates             75.1 76.1 76.7 76.6 77.6    
       
Manufacturing (see note below) 78.1 85.6 77.3 84.7 63.5 72.8 75.5 76.8 77.2 77.1 77.1 78.0 .3
Previous estimates             75.5 76.8 77.3 77.2 77.3    
Mining 85.9 86.0 83.8 88.3 78.3 66.4 74.2 77.0 77.4 77.4 78.1 78.0 -.2
Utilities 84.8 93.1 84.6 93.2 78.0 78.5 73.7 70.9 72.7 70.7 77.9 75.7 2.5
       
Stage-of-process groups
Crude 85.2 87.7 84.6 89.7 76.5 66.4 74.8 77.6 77.9 77.6 78.5 78.6 .2
Primary and semifinished 80.0 86.5 78.1 87.9 63.5 74.0 74.8 75.0 75.8 75.3 77.0 77.1 .8
Finished 76.8 83.4 77.5 80.7 66.5 73.7 75.8 76.8 77.3 77.1 77.3 78.0 .3
[r] Revised. [p] Preliminary.
Market Groups

The indexes for most major market groups increased in February, with the exceptions of consumer goods and energy materials. Within consumer goods, durables and nondurables each recorded declines, with the former primarily reflecting a decrease in the output of automotive products and the latter primarily reflecting a decrease in the output of energy products. The indexes for business equipment, for defense and space equipment, and for construction supplies all registered gains of between 1-1/2 and 2-3/4 percent. The indexes for business supplies and for materials each increased at more modest rates of around 1/2 percent, held down by declines in the production of energy goods.

Industry Groups

Manufacturing output rose 1.2 percent in February. The indexes for durable and nondurable manufacturing moved up 1.3 percent and 1.1 percent, respectively, while the output of other manufacturing (publishing and logging) moved down 0.4 percent. Most major durable and nondurable goods industry groups posted gains. An exception was the output of motor vehicles and parts, which declined 3.5 percent and continued to be restrained by a shortage of electronic components. In February, the indexes for most industry groups were higher than in the beginning of 2021; notable exceptions were the indexes for motor vehicles and parts and for other manufacturing (publishing and logging).

The decrease of 2.7 percent in the output of utilities in February reflected a return to more seasonable weather following a colder-than-average January. In February, the index for mining was little changed, as a decline in oil and gas extraction was offset by an increase in support activity for oil and gas operations. The index for mining in February was about 7 percent above its level at the beginning of last year but still about 7 percent below its pre-pandemic (February 2020) reading.

Capacity utilization for manufacturing increased 0.9 percentage point in February to 78.0 percent, 2.5 percentage points higher than its pre-pandemic level but 0.1 percentage point below its long-run average. The operating rate for mining edged down 0.1 percentage point to 78.0 percent, and the operating rate for utilities declined 2.2 percentage points to 75.7 percent. Both rates remained well below their long-run averages.

Revision of Industrial Production and Capacity Utilization

The Federal Reserve Board plans to issue its annual revision to the indexes of industrial production (IP) and the related measures of capacity utilization in the second quarter of 2022. New annual benchmark data for manufacturing for 2020 will be incorporated, as well as other annual data, including information on the mining of metallic and nonmetallic minerals (except fuels). The updated IP indexes 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 data for manufacturing through the fourth quarter of 2021 from the U.S. Census Bureau's Quarterly Survey of Plant Capacity Utilization, along with new data on capacity from the U.S. Geological Survey, the U.S. Department of Energy, and other organizations.

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.

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Last Update: March 17, 2022