INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
[2005 Revision Notice Below]

Industrial production rose 0.9 percent in June, and at 119.7 percent of its 1997 average, it was 3.9 percent higher than its level in June 2004. The increase in June was the largest for the overall index since February 2004; a jump of 5.3 percent in the output of utilities, the result of warmer-than-usual temperatures, accounted for more than one-half of the June gain. Despite last month's large rise, total output advanced only 2.1 percent (annual rate) in the second quarter, the smallest quarterly increase since the second quarter of 2003. Manufacturing output advanced 0.4 percent in June, and the index for manufacturing excluding motor vehicles and parts edged up 0.1 percent. Production at mines rose 0.4 percent. Capacity utilization for total industry rose to 80.0 percent; the rate was 2.2 percentage points above its value in June 2004 but was 1.0 percentage point below its 1972-2004 average.

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 production of consumer goods rose 1.2 percent in June. The output of durables moved up 1.8 percent, although the index declined 2.5 percent (annual rate) in the second quarter. The output of automotive products rose 2.8 percent in June, its second consecutive monthly increase after declines in March and April. All other major categories of consumer durables advanced in June, though at a slower pace than did automotive products. The production of consumer nondurables rose 1.0 percent in June and increased 3.2 percent (annual rate) in the second quarter. The output of consumer energy products moved up 4.2 percent in June, and the production of non-energy nondurables rose 0.2 percent. Output increased for all major categories of nondurables except clothing.

The index for business equipment advanced 0.2 percent in June and moved up at an annual rate of 7.9 percent in the second quarter, its eighth consecutive quarterly rise. The production of transit equipment rose 0.8 percent in June, and the output of information processing equipment advanced 0.4 percent. Although the index for industrial and other equipment fell slightly in June, it increased at an annual rate of 6.2 percent in the second quarter. The production of defense and space equipment rose 1.4 percent in June and was up 11.3 percent from its June 2004 level.

The index for construction supplies declined 0.4 percent in June but rose at an annual rate of 2.9 percent in the second quarter. The index for business supplies increased 1.4 percent in June.

The production of materials advanced 0.7 percent in June; the output of non-energy materials posted a modest gain of 0.1 percent, but the output of energy materials climbed 2.2 percent. The index for non-energy materials fell at an annual rate of 1.9 percent in the second quarter after a string of seven quarters of increases. Among non-energy materials, the output of durable materials edged up 0.1 percent in June, as gains in the production of consumer parts and of equipment parts were nearly offset by a decline in the output of other materials, such as steel. The index for nondurable materials was unchanged, as the output of paper increased but that of textiles and chemicals declined.

Industry Groups

Manufacturing output rose 0.4 percent in June; at an annual rate, the index moved up just 1.5 percent in the second quarter. The overall factory operating rate increased 0.2 percentage point last month, to 78.4 percent. The production of durable manufacturing goods rose 0.6 percent and was led by a 2.9 percent gain in the output of motor vehicles and parts. Among the other major categories of durable goods, the production of computer and electronic products rose 0.7 percent in June, and the output of aerospace and miscellaneous transportation equipment increased 0.9 percent. A decline in the output of steel in June contributed to a 2.2 percent drop in the index for primary metals, which fell at an annual rate of 24.7 percent in the second quarter. The production of nondurable goods edged up 0.1 percent in June, and gains in the output of food, beverage, and tobacco products; paper; petroleum and coal products; and chemicals contributed to the rise. The indexes for textile and product mills, apparel and leather, printing and support, and plastics and rubber products industries all posted declines. The output of non-NAICS manufacturing industries (publishing and logging) rose 0.3 percent.

The output at utilities climbed 5.3 percent in June and was bolstered by a nearly 7 percent jump in electricity generation. The operating rate at overall utilities rose to 88.2 percent. The output at mines increased 0.4 percent, and the utilization rate for mining advanced 0.4 percentage point, to 89.0 percent.

By stage of process, capacity utilization for industries in the crude stage moved up 0.3 percentage point, to 87.1 percent. For industries in the primary and semifinished stages, the operating rate rose 0.9 percentage point, to 80.7 percent, and for industries in the finished stage, utilization increased 0.4 percentage point, to 77.7 percent.

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 for the revision is still to be determined. The revised IP indexes will incorporate data from the 2003 Annual Survey of Manufactures and from selected editions of the 2003 and 2004 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 2003 and 2004 will also be introduced. 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 2004 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 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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