Industrial Production and Capacity Utilization - G.17

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Release Date: October 18, 2021

Industrial production fell 1.3 percent in September after moving down 0.1 percent in August; output was previously reported to have risen 0.4 percent in August. In September, manufacturing output decreased 0.7 percent: The production of motor vehicles and parts fell 7.2 percent, as shortages of semiconductors continued to hobble operations, while factory output elsewhere declined 0.3 percent. The output of utilities dropped 3.6 percent, as demand for cooling subsided after a warmer-than-usual August. Mining production fell 2.3 percent.

The lingering effects of Hurricane Ida more than accounted for the drop in mining in September; they also contributed 0.3 percentage point to the drop in manufacturing. Overall, about 0.6 percentage point of the drop in total industrial production resulted from the impact of the hurricane.

Despite the decrease in September, total industrial production rose 4.3 percent at an annual rate for the third quarter as a whole, its fifth consecutive quarter with a gain of at least 4 percent.

At 100.0 percent of its 2017 average, total industrial production in September was 4.6 percent above its year-earlier level. Capacity utilization for the industrial sector fell 1.0 percentage point in September to 75.2 percent, a rate that is 4.4 percentage points below its long-run (1972–2020) average.

Industrial Production and Capacity Utilization: Summary
Seasonally adjusted
Industrial production 2017=100 Percent change
2021 2021 Sept. '20 to
Sept. '21
Apr.[r] May[r] June[r] July[r] Aug.[r] Sept.[p] Apr.[r] May[r] June[r] July[r] Aug.[r] Sept.[p]
       
Total index 99.2 99.9 100.4 101.4 101.3 100.0 .1 .7 .5 1.0 -.1 -1.3 4.6
Previous estimates 99.2 99.9 100.3 101.2 101.6   .1 .6 .5 .8 .4    
       
Major market groups
Final Products 99.0 99.8 99.9 101.8 101.8 100.5 -.7 .8 .1 1.9 -.1 -1.2 4.6
Consumer goods 99.5 100.2 99.8 100.9 101.2 99.3 -.4 .7 -.4 1.1 .3 -1.9 1.4
Business equipment 92.3 93.8 93.5 96.9 96.3 96.7 -1.8 1.6 -.4 3.6 -.6 .4 8.1
Nonindustrial supplies 96.6 96.7 96.3 97.3 97.6 97.4 -.3 .1 -.3 1.0 .3 -.3 4.8
Construction 100.1 99.2 98.1 99.5 100.1 100.4 -1.5 -.9 -1.1 1.4 .6 .2 5.0
Materials 100.2 101.0 102.2 102.3 102.1 100.3 1.0 .8 1.2 .1 -.3 -1.7 4.6
       
Major industry groups
Manufacturing (see note below) 97.6 98.4 98.1 99.8 99.4 98.7 -.2 .8 -.3 1.7 -.4 -.7 4.8
Previous estimates 97.5 98.3 98.0 99.5 99.7   -.3 .8 -.3 1.6 .2    
Mining 104.9 106.6 106.7 107.5 106.5 104.1 -.5 1.6 .1 .7 -.9 -2.3 6.9
Utilities 101.7 100.3 106.4 103.1 105.8 102.1 2.7 -1.4 6.1 -3.1 2.6 -3.6 1.6

Capacity utilization Percent of capacity Capacity
growth
Average
1972-
2020 		1988-
89
high 		1990-
91
low 		1994-
95
high 		 
2009
low 		 
2020
Sept. 		   
2021 Sept. '20 to
Sept. '21
Apr.[r] May[r] June[r] July[r] Aug.[r] Sept.[p]
       
Total industry 79.6 85.2 78.8 85.1 66.6 72.1 74.8 75.3 75.6 76.3 76.2 75.2 .2
Previous estimates             74.8 75.2 75.6 76.2 76.4    
       
Manufacturing (see note below) 78.2 85.6 77.3 84.7 63.5 72.4 75.1 75.7 75.5 76.8 76.5 75.9 .0
Previous estimates             75.0 75.6 75.4 76.6 76.7    
Mining 86.2 86.0 83.8 88.3 78.3 68.1 74.2 75.4 75.6 76.2 75.5 73.9 -1.4
Utilities 85.0 93.1 84.6 93.2 78.0 73.7 73.4 72.3 76.5 74.0 75.8 73.0 2.6
       
Stage-of-process groups
Crude 85.4 87.7 84.6 89.7 76.5 70.2 75.1 77.1 77.3 77.6 76.8 74.5 -.8
Primary and semifinished 80.2 86.5 78.1 87.9 63.5 72.2 74.5 74.3 75.1 75.1 75.5 74.5 .5
Finished 76.8 83.4 77.5 80.7 66.5 72.5 75.0 75.6 75.6 77.4 77.0 76.6 .0
[r] Revised. [p] Preliminary.
Market Groups

Much of the weakness in production in September resulted from large decreases for consumer goods and materials. Business equipment, defense and space equipment, and construction supplies recorded small gains, and business supplies recorded a small loss. The index for consumer goods fell 1.9 percent, with large declines in durables, particularly automotive products, and in consumer energy products. Likewise, the index for materials dropped 1.7 percent; both chemical materials and energy materials posted decreases of more than 3 percent as a result of the prolonged hurricane-related outages for industries concentrated near the Gulf of Mexico.

Industry Groups

Manufacturing output fell 0.7 percent in September; even so, the index rose 5.3 percent at an annual rate in the third quarter. Production of durable goods decreased 0.5 percent in September, with a drop of 7.2 percent for motor vehicles and parts. Outside of motor vehicles and parts, the production of durables moved up 0.5 percent, as gains of 1 percent or more were posted by primary metals; electrical equipment, appliances, and components; aerospace and miscellaneous transportation equipment; furniture and related products; and miscellaneous manufacturing. The output of nondurable goods fell 1.0 percent. The largest increases were recorded by printing and support and by textile and product mills, while the largest decreases were recorded by chemicals and by petroleum and coal products. The output of other manufacturing (publishing and logging) declined 0.2 percent.

Capacity utilization for manufacturing decreased 0.6 percentage point in September to 75.9 percent. The operating rate for mining fell 1.6 percentage points to 73.9 percent, while the operating rate for utilities dropped 2.8 percentage points to 73.0 percent. The rates for all three sectors remained below their long-run averages.

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: October 18, 2021