1                                FEDERAL RESERVE STATISTICAL RELEASE                                

 G.17 (419)  Annual Revision                                         For release at 11:00 a.m. (EST)
                                                                     November 27, 2001

 INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION


 	 The Federal Reserve has revised the index of industrial production (IP) and the
 related measures of capacity and capacity utilization for the January 1992 to October
 2001 period. 
 	 Measured fourth quarter to fourth quarter, industrial output and capacity are now
 reported to have increased at a slower rate in 1999 and 2000 than previously reported, but
 the revision still places the decline in IP in 2001 at about 5-1/2 percent at an annual rate.\1  
 The estimated rate of increase in capacity in 2001 was lowered by 0.7 percentage point,
 to 1.7 percent. 
 	 Despite the downward revision to IP in 1999 and 2000, the general contour is the
 same as in the earlier estimates.  After having picked up in the second half of 1999 and
 after having posted rapid gains in the first half of 2000, increases in industrial output
 abated noticeably at mid-year.  According to the revised data, however, industrial output
 was weaker in the second half of 2000 than in the earlier estimates.
 	 The rate of industrial capacity utilization (the ratio of production to capacity) as of
 the third quarter of 2001 was little changed by the revision; at 76.2 percent, the rate is
 2-1/2 percentage points below the low of the 1990-91 recession but 4-1/2 percentage
 points above the low of the 1982 recession.\2  For the fourth quarter of 2000, capacity
 utilization was revised down 0.6 percentage point, to 80.7 percent; a downward revision
 to the operating rate in manufacturing of 1.2 percentage points was partly offset by an
 upward revision to the operating rates in mining and utilities.
 	 The updated measures reflect the incorporation of newly available, more
 comprehensive source data and the introduction of improved methods for compiling a
 few series.  The new source data are for recent years, primarily 1999 on, and the modified
 methods affect the indexes from 1992 onward.   
 	 The statistical revisions to the IP index were principally derived from the
 inclusion of information contained in annual reports issued by the Bureau of the Census:
 the 1999 Annual Survey of Manufactures and selected 2000 Current Industrial Reports. 
 Revised annual data from the U.S. Geological Survey (USGS) on minerals (except fuels)
 for 1999 and some new data for 2000 were also introduced.  In addition, the new monthly
 production estimates for 2000 and 2001 reflect updated seasonal factors and the inclusion
 of monthly source data that became available (or were revised) after the closing of the
 regular four-month reporting window.
 	 The capacity indexes and capacity utilization rates incorporate the revised
 production indexes, results from the Census Bureau's 2000 Survey of Plant Capacity for
 the fourth quarter of the year, and newly available 2000 data on industrial capacity from
 the USGS, the Energy Information Agency (EIA) of the Department of Energy, and other
 organizations.  In addition, the relationships used to estimate the current growth of
 manufacturing capacity reflect the inclusion of the Census data on capital spending by
 industry for 1999 and indicators of the rate of change in manufacturing capital spending
 in 2000 and 2001.  
 	 The revised indexes of industrial production and capacity also reflect the updating
 of the value-added weights used in aggregating the individual indexes to the major
 industry and market group subtotals and to total industry.  The industry groups in IP and
 capacity continue to be based on the 1987 Standard Industrial Classification (SIC); in the
 2002 revision, the industrial production and capacity utilization data will be constructed
 and grouped according to the North American Industry Classification System (NAICS).
 	 Beginning with this revision, the capacity index for the extraction of natural gas is
 based on newly available estimates from the EIA; the new data substantially lower the
 estimate of the industry's capacity for the 1995 to 1999 period.  The revision also
 incorporates new source data for another capacity series (silver); refinements to the
 methods used to compile two monthly production series (construction machinery and
 original equipment motor vehicle parts); and new methods and new source data to derive
 the value-added weights for the IP and capacity series for electric utilities.  The rates of
 change in the new weights were applied to the old 1992 weight to derive a new series of
 annual weights ("best-change" method) and result in slightly larger value-added
 proportions for the electric utility industry.

 RESULTS OF THE REVISION

 	 For the third quarter of 2001, the revision places the production index at 139.6
 percent of output in 1992 and the capacity index at 183.2 percent of output in 1992 (table
 1); both indexes are lower than reported previously (chart 1).  As noted earlier, the
 capacity utilization rate was little changed for the third quarter of 2001.
 	 Tables 2, 3, and 4 show new data for monthly manufacturing IP and capacity
 utilization as well as the results for total and manufacturing excluding selected
 high-technology industries.   Tables 5 and 6 show the revised rates of change of industrial
 production for market groups, industry groups, special aggregates, and selected detail for
 the years 1997 through 2001:Q3; tables 7 and 8 show the revised figures for capacity
 utilization and capacity.  For production and capacity, the tables also show the difference
 between the revised and earlier rates of change.  For capacity utilization, the tables show
 difference between revised and previous rates for the final quarter of the year (third
 quarter used for 2001).

 Industrial production

 	 The revision lowered the increase in industrial output by 0.7 percentage point for
 1999 and 1.6 percentage points for 2000 (measured from the fourth quarter of the
 preceding year to the fourth quarter of the year indicated); the increase in industrial
 production was raised slightly for 1997 and 1998. 
 	 The somewhat faster increase in IP now shown for 1997 and 1998 reflect both the
 incorporation of recently issued revisions to the annual Census data and the introduction
 of refinements and revisions to the price deflators used to construct the annual indexes
 that determine the trend in each industrial production series from one year to the next.\3  
 	 For most two-digit manufacturing industries, the new annual reports issued by the
 Census Bureau implied only small changes to previously published IP figures for 1999. 
 The output indexes for the transportation equipment industry, the apparel and products
 industry, and the rubber and plastics industry were revised.  However, new data for the
 computer industry, mainly for printers and other peripheral equipment, implied a weaker
 gain in output for the industrial machinery and equipment group.  The output of that
 industry was also lowered in 2000 because of the inclusion of available data from the
 Current Industrial Reports.   Nonetheless, on balance, the revised data still indicate that
 the production of industrial machinery and equipment increased at a robust rate in both
 years. 
 	 The revision now places the rise in the production index for the output of
 high-technology industries--computers and office equipment (SIC 357), semiconductors
 and related devices (SIC 3672-9), and communications equipment (SIC 366)--at about
 40 percent in 2000.  The previously published estimate was appreciably stronger; the new
 estimates show less rapid gains in the output of semiconductors, computers, and
 peripherals.  The downward revisions to the indexes for semiconductor output reflect the
 incorporation of data from the 2000 Current Industrial Report and more comprehensive
 information on prices.
 	 Excluding high-technology industries, the revised IP series show more
 pronounced weakness, mainly in manufacturing, in the second half of 2000.  The change
 reflects the updating of seasonal factors and the inclusion of revisions to monthly source
 data.  The more-pronounced weakness appears in the durable goods manufacturing
 industries, especially the industrial machinery, motor vehicle parts, instruments, furniture,
 and stone, clay, and glass products industries.
 	 Among major market groups, the revised production indexes for consumer goods
 and for construction supplies showed, on balance, little change for 2000 and 2001.  The
 revised indexes for business equipment and materials production showed slower gains in
 2000 but little change in the decline for 2001. 

 Capacity

 	 For 2001, manufacturing capacity is estimated to be rising 1.6 percent, more than
 one percentage point lower than previously published.  On average, manufacturing
 capacity increased 4.6 percent per year in 1999 and 2000 (previously estimated at about 5
 percent) and, on average, expanded 6 percent per year from 1994 to 1998 (virtually
 unchanged from the previous estimates).  The rapid gains in capacity during the second
 half of the 1990s were concentrated in industries producing high-technology goods and
 devices.  Given the downward revision to output in these industries, the pace of capacity
 expansion was also revised down; nonetheless, from 1994 to 2000 it still averaged nearly
 40 percent per year.   The relatively slow expansion of capacity in these industries in
 2001, now estimated at 12.9 percent, is in large part the result of a downshift in capital
 spending by semiconductor manufacturers.  Outside of the selected high-technology
 industries, plant capacity for 2001 is estimated to be edging up 0.3 percent, down from
 the 2 percent pace in 1999 and the 3.2 percent annual average for 1994 to 1998.
 	 Capacity in mining was revised down noticeably for the 1995 to 2000 period, but
 was revised up substantially for 2001.  The changes were primarily the result of
 incorporating new EIA measures for the capability to extract natural gas; in value-added
 terms, natural gas extraction is about 30 percent of mining output.  According to the
 revised data, from 1995 to 1998, capacity at mines increased a scant 0.2 percent per year,
 and in 1999 and 2000 it declined about 2 percent per year.  For 2001, however, mining
 capacity is estimated to be increasing 0.4 percent.
 	 Capacity at electric and gas utilities increased a bit more slowly from 1997 to
 2000 than previously reported.  The North American Electric Reliability Council reduced
 its estimate of generating capacity for 2000 but sharply increased the estimate for 2001;
 as a result, the rise in capacity at utilities for 2001 was revised up more than one
 percentage point, to 5.2 percent.  In both the previous and revised data, the rate of
 expansion of utility capacity for 2001 is the largest since 1974, a surge reflecting the
 response of producers to the significant shortfall in generating capacity last winter.

 Capacity utilization

 	 The Survey of Plant Capacity indicated that the factory operating rate was lower
 in the fourth quarter of 2000 than previously estimated.  The revised utilization rate for
 manufacturing is 79.1 percent in the final quarter of 2000, more than 1 percentage point
 lower than reported earlier. 
 	 Capacity utilization in manufacturing reached 81.7 percent in the middle of 2000,
 0.6 percentage point above its long-term (1967-2000) average.  The factory operating rate
 had climbed to 83 percent in 1997, before the onset of economic turmoil in Asia, but
 dropped back more than 2 percentage points by the end of 1998.  From the middle of
 2000 to the third quarter of 2001, the utilization of manufacturing capacity plummeted 
 more than 7 percentage points.
 	 Among manufacturing industries in the third quarter of 2001, the utilization rates
 for primary processors were nearly the same as those for advanced processors.  Since the
 middle of 2000, the decline in the rate for primary processing industries--nearly 11
 percentage points--has been especially sharp.   Primary processors were operating at
 relatively elevated rates in the second quarter of 2000; the rates for primary metals,
 semiconductors, stone, clay and glass products, petroleum products, and motor vehicle
 parts were above their long-term averages.  By the third quarter of 2001, the only primary
 processing industries that were operating at rates above their long-term averages were
 petroleum and products and stone, clay, and glass products.  Among advanced
 processors, only the producers of light trucks and of chemical products were operating at
 above-average rates.
 	 Capacity utilization in mining was an upwardly revised 90.8 percent in the third
 quarter of 2001, more than 3 percentage points above its long-term average.  The
 utilization rate for electric and gas utilities in the third quarter of 2001 was little changed
 by the revision, but the rates in 1998, 1999, and 2000 were raised.

 TECHNICAL ASPECTS OF THE REVISION

 	 As noted earlier, the annual revision incorporated more comprehensive annual
 data on industry output, utilization, value added, and capital spending for 1999 and 2000,
 along with an update of all seasonal factors and monthly data on production, production
 worker hours, and electric power use.  In addition, the capital input measures used in the
 construction of capacity indexes incorporate more-recent overall business investment and
 price data from the Bureau of Economic Analysis.\4  Previously issued annual data on
 output and prices for 1997 and 1998 that were slightly revised by the original source were
 also included.
 	 The industrial production and capacity utilization data continue to be based on the
 1987 Standard Industrial Classification (SIC).  The Census Bureau reported its new 1999
 and 2000 data on industry output and capacity utilization, as well as its revisions to 1997
 and 1998 data, on the new North American Industrial Classification System (NAICS). 
 Before being included in the IP and capacity indexes, the data were recategorized by the
 Federal Reserve according to the SIC system. 
 	 In the 2002 revision, the industrial production and capacity utilization data will be
 derived according to the NAICS; data from at least 1977 onward will be subject to
 revision; and the indexes will be rebased, with 1997 equal to 100.  The new NAICS
 production data will be derived from annual output measures constructed by reclassifying
 the establishments in historical Censuses of Manufactures and Mineral Industries
 according to NAICS categories; annual output indexes constructed in this way maximize
 the reliability and historical consistency of the IP industry detail.

 Revised Monthly Data

 	 The product data that are used to measure the monthly movements of many IP indexes
 were updated to capture data that became available after the closing of the regular four-
 month reporting window.  For example, monthly data from the Department of the
 Treasury on the production of alcoholic beverages and cigarettes may be unavailable
 initially but available for inclusion in the annual revision. 
 	 The input measures were also updated to incorporate revised data on monthly
 production worker hours (based on the BLS benchmark of employment to March 2000
 comprehensive measures) and on monthly electric power use since 1997.  Besides
 benchmarking data on production worker hour to March 2000 comprehensive measures,
 the BLS also incorporated data derived from new sampling procedures from 1999 on. 
 The new estimates reduced the change in manufacturing production worker hours in the
 second half of 2000, with the bulk of the reduction in industries in which the data on
 production worker hours are used as the monthly production indicator in IP.
 	 Seasonal factors for all series were re-estimated using data that extend into 2001.   
 Factors for production worker hours, which adjust for timing, holiday, and monthly
 seasonal patterns, were updated with data through October 2001.  Factors for the electric
 power series, which are developed using multivariate methods, were re-estimated using
 data through May 2001.  The updated factors for the physical product series, which
 include adjustments for holiday and workday patterns, used data through at least June
 2001.  Seasonal factors for unit motor vehicle assemblies have been updated with data
 through September 2001 and are on the Board's website at
 www.federalreserve.gov/releases/g17/mvsf.htm.

 Weights for aggregation

 	 The weights for the aggregation of IP indexes and capacity utilization rates are derived
 from annual estimates of industry value added.  For manufacturing, the Census Bureau
 provides such data annually; for mining, quinquennial figures are provided.  For the
 electric and gas utility industries, the Federal Reserve derives estimates of value added
 from annual revenue and expense data issued by other organizations.  Estimates of
 industry value added were updated with annual data through 1999, and the weights for
 aggregation (unit value added) have been estimated using the most recent data on
 producer prices.  Table 9 reports the annual value-added proportions incorporated in the
 IP index from 1993 on.
 	 Beginning with this revision, the methods and data used to obtain estimates of
 value added in the electric utility industry have been improved.  A change was necessary
 for several reasons.  First, much of the data that had been used to compute value added
 was contained in an EIA publication that has been discontinued.  Second, the EIA data on
 "utilities" include regulated entities only, and data covering all producers of electric
 power (that is, including the unregulated power generators) are required to avoid a severe
 understatement of the value added by the entire industry in 2000.  Last, a review of the
 earlier methods suggested value added was understated for the period preceding the
 deregulation of the industry.
 	The Federal Reserve's new estimates of value added for the electric utility
 industry were constructed according to the Census definition of value added, that is,
 industry revenue less the cost of purchased material inputs.  Data on industry revenue
 (including all establishments that distribute power to final users) were obtained from
 Statistical Yearbooks issued by the Edison Electric Institute; these data were combined
 with EIA measures of fuel costs to obtain an estimate of Census value added.  The new
 figures were applied on a best-change basis for the period from 1992 onward; the 2002
 revision will introduce refined results as well as revised figures for earlier years.

 Changes to individual series

 	 With this revision, the capacity series for natural gas extraction (part of SIC 13)
 incorporates new estimates developed by the EIA; the new estimates are substantially
 lower than the agency's previous figures that were used to derive the capacity for natural
 gas extraction.  The new figures are designed to better reflect the ability of producing
 wells to deliver gas into the gathering and pipeline system, whereas previous EIA figures
 measured capacity at the wellhead only.
 	 The source data for one other capacity series has changed.  The index for silver
 capacity is now based on data from the USGS; previously it was derived using a trend-
 through-peak method.  
 	 The monthly production indicators for construction machinery and original
 equipment motor vehicle parts were refined.  For construction machinery, the weights
 used to combine the available product data were updated.  For motor vehicle parts, the
 indicator is developed from monthly product data (engines, brakes, axles, and
 transmissions), production worker hours, and motor vehicle assemblies; previously, the
 series was derived from the product data only. 
 	 Last, the annual estimates of motor vehicle repair parts were improved; their
 derivation now includes information on the average age of the motor vehicle fleet.

 LAN Equipment

 	 The 2000 revision introduced a new IP series for the production of local area network
 (LAN) equipment (routers, switches, and hubs).  The new series is not published in the
 monthly statistical release, but it is included in the broader IP aggregate for
 communications equipment and updated on an ongoing basis (see the March 2001
 Bulletin article).  The table below updates the results for LAN equipment originally
 issued a year ago.


 		 U.S. LAN Equipment, 1992 to 2001

 			 Production   Price   Value of Production
 	  Period            Index     Index   Millions of dollars
    Annual Estimates.
   Indexes are 1992=100
  1992                      100.000   100.000             1,684.8
  1993                      190.691    83.556             2,684.4
  1994                      298.728    74.243             3,736.6
  1995                      604.349    62.153             6,328.3
  1996                      953.621    57.123             9,177.7
  1997                    1,610.035    47.548            12,897.7
  1998                    2,480.329    34.327            14,344.5
  1999                    3,191.443    28.130            15,124.9
  2000                    4,163.164    24.406            17,118.2
   Quarterly Estimates.
  Indexes are 1996:Q1=100
  1996:Q1                   100.000   100.000             7,923.2
  1996:Q2                   113.744    98.967             8,919.0
  1996:Q3                   128.626    93.735             9,552.8
  1996:Q4                   150.302    86.623            10,315.7

  1997:Q1                   161.797    84.029            10,772.1
  1997:Q2                   183.502    79.683            11,585.3
  1997:Q3                   224.022    77.535            13,762.2
  1997:Q4                   262.123    74.493            15,471.1

  1998:Q1                   290.487    62.795            14,452.9
  1998:Q2                   326.083    59.075            15,262.7
  1998:Q3                   328.499    53.487            13,921.3
  1998:Q4                   329.790    52.587            13,741.0

  1999:Q1                   417.721    48.619            16,091.2
  1999:Q2                   419.060    47.117            15,644.2
  1999:Q3                   394.817    46.808            14,642.6
  1999:Q4                   402.795    44.249            14,121.6

  2000:Q1                   449.375    43.459            15,473.4
  2000:Q2                   493.979    41.718            16,327.9
  2000:Q3                   599.868    39.456            18,752.6
  2000:Q4                   604.171    37.433            17,919.0

  2001:Q1                   538.767    34.889            14,893.0
  2001:Q2                   481.771    33.144            12,651.6
  2001:Q3                   446.587    33.388            11,814.1
   ------------------------------------------------------------------------



 1.  The peak in IP is now in June 2000.  The cumulative decline in IP since then is 7.0 percent.   The revised
 data show consecutive declines in monthly IP for the nine months ending June 2001, a 0.1 percent increase
 in July 2001, and decreases for the three months ending October 2001; the earlier data showed declines in
 monthly IP for all thirteen months.
 2.  These comparisons use quarterly average data.
 3.  The general methods used to measure individual IP series were reviewed in an article published in the
 March 2001 issue of the Federal Reserve Bulletin
 (www.federalreserve.gov/pubs/bulletin/2001/0301scnd.pdf) .
 4.  The general methods used to measure individual capacity series were summarized in the March 2001
 article in the Federal Reserve Bulletin.  A fuller description of the models used to develop the Federal
 Reserve's capacity estimates were reported in the March 2000 issue of the Bulletin
 (www.federalreserve.gov/pubs/bulletin/2000/0300secnd.pdf).
 	






1Table 1
 INDUSTRIAL PRODUCTION, CAPACITY AND UTILIZATION <1>: Total Industry
 Seasonally adjusted


 ---------------------------------------------------------------------------------------------------------------------------------------------
                 |                                                                                    |                            |
                 |   Jan.   Feb.   Mar.   Apr.    May   June   July   Aug.  Sept.   Oct.   Nov.   Dec.|     Q1     Q2     Q3     Q4|Annual <2>
 ---------------------------------------------------------------------------------------------------------------------------------------------
                 |                                                                                    |                            |
 IP (percent     |                                                                                    |                            |
 change)         |                                                                                    |                            |
  1979           |   -.5     .8     .3    -.9    1.2     .0    -.7    -.4     .1     .4    -.5    -.2 |   2.2    1.1   -2.3    -.3 |      3.3
  1980           |    .5     .1     .0   -1.9   -2.5   -1.3    -.6    1.2    1.5     .7    1.6     .5 |    .8  -15.0   -4.2   14.2 |     -2.8
  1981           |   -.9     .5     .5    -.7     .8     .6     .9    -.4    -.8    -.8   -1.4   -1.1 |   1.9    2.2    4.1  -10.5 |      1.6
  1982           |  -1.6    2.2    -.7    -.9    -.8    -.3    -.8    -.5    -.7    -.8    -.3    -.8 |  -6.4   -5.2   -7.3   -7.5 |     -5.4
                 |                                                                                    |                            |
  1983           |   2.1    -.2    1.0    1.3    1.2     .6    1.8    1.3    1.7     .8    -.1     .5 |   6.8   11.9   17.3   10.3 |      3.7
  1984           |   2.1    -.2    1.1     .5     .6     .5     .2     .0    -.1    -.5     .1    -.4 |  11.1    7.2    2.6   -2.6 |      8.9
  1985           |    .4     .9     .3     .2     .2    -.2    -.4     .6     .6    -.9     .6     .7 |   3.0    2.8     .3    1.4 |      1.6
  1986           |    .6    -.7   -1.0     .8    -.2    -.3     .3     .3    -.1     .9     .5     .9 |   2.0   -1.7     .7    6.5 |      1.1
  1987           |   -.6    1.2     .4     .4     .4     .9     .6     .1    -.1    1.4     .3     .6 |   4.2    6.7    5.6    7.1 |      4.6
                 |                                                                                    |                            |
  1988           |    .1     .3     .0     .6     .1     .1     .7     .5    -.4     .3     .8     .5 |   3.2    3.1    3.9    3.6 |      4.5
  1989           |    .6    -.8     .9     .2    -.6    -.2   -1.0     .4    -.2    -.5     .4     .5 |   3.8     .5   -4.4    -.1 |      1.8
  1990           |   -.5     .5     .5    -.6     .4     .0     .0     .2     .1    -.6   -1.3    -.6 |   2.0     .6    1.0   -5.8 |      -.2
  1991           |   -.5    -.8    -.9     .3     .8    1.2     .1     .1    1.0    -.1    -.1    -.6 |  -8.3    1.5    6.2    1.1 |     -2.0
  1992           |    .0     .5     .9     .7     .3    -.1     .9    -.3     .4     .5     .6     .0 |    .6    6.6    3.3    4.4 |      3.1
                 |                                                                                    |                            |
  1993           |    .3     .4     .2     .3    -.4     .2     .2    -.2    1.0     .4     .5     .8 |   3.6    1.5    1.8    6.5 |      3.4
  1994           |    .2     .3     .8     .6     .7     .5     .3     .4     .2     .8     .6    1.1 |   5.7    7.6    5.2    7.5 |      5.5
  1995           |    .5     .0     .1    -.2     .3     .4    -.5    1.3     .4    -.1     .3     .2 |   5.9     .8    3.6    3.6 |      4.8
  1996           |   -.3    1.2    -.1    1.0     .7     .7     .2     .6     .5     .0    1.0     .6 |   2.9    8.4    6.3    5.8 |      4.6
  1997           |    .4    1.1     .1     .6     .3     .5     .5    1.0     .7     .7     .6     .2 |   7.7    6.0    7.7    8.2 |      6.9
                 |                                                                                    |                            |
  1998           |    .6     .1     .3     .5     .3    -.6    -.2    1.9    -.2     .6    -.4     .0 |   4.5    3.2    2.8    3.5 |      5.1
  1999           |    .7     .2     .4     .1     .4     .2     .6     .5     .0     .8     .4     .7 |   3.6    3.3    4.7    5.8 |      3.7
  2000           |    .2     .6     .6     .5     .7     .4    -.4     .1     .1    -.4    -.3    -.4 |   5.8    7.0     .6   -2.6 |      4.5
  2001           |   -.8    -.3    -.4    -.6    -.3    -.9     .1    -.4    -.9   -1.2               |  -6.1   -5.9   -4.8        |         
                 |                                                                                    |                            |
 IP (1992=100)   |                                                                                    |                            |
  1999           | 136.9  137.2  137.8  137.9  138.5  138.8  139.6  140.2  140.3  141.3  141.9  142.9 | 137.3  138.4  140.0  142.0 |    139.4
  2000           | 143.2  144.0  144.9  145.6  146.6  147.2  146.5  146.7  146.8  146.3  145.8  145.1 | 144.0  146.5  146.7  145.7 |    145.7
  2001           | 143.9  143.5  142.9  142.0  141.6  140.3  140.4  139.8  138.5  136.9               | 143.5  141.3  139.6        |         
                 |                                                                                    |                            |
 Capacity        |                                                                                    |                            |
 (percent of     |                                                                                    |                            |
 1992 output)    |                                                                                    |                            |
  1999           | 168.4  168.9  169.5  170.0  170.5  171.0  171.5  172.0  172.5  173.1  173.6  174.2 | 168.9  170.5  172.0  173.6 |    171.3
  2000           | 174.8  175.4  176.0  176.6  177.2  177.9  178.5  179.0  179.6  180.1  180.6  181.1 | 175.4  177.2  179.0  180.6 |    178.1
  2001           | 181.5  181.8  182.2  182.4  182.6  182.8  183.0  183.2  183.3  183.5               | 181.8  182.6  183.2        |         
                 |                                                                                    |                            |
 Utilization     |                                                                                    |                            |
 (percent)       |                                                                                    |                            |
  1979           |  86.7   87.1   87.1   86.1   86.9   86.7   85.9   85.4   85.3   85.5   84.9   84.5 |  87.0   86.6   85.5   85.0 |     86.0
  1980           |  84.7   84.6   84.4   82.6   80.4   79.2   78.5   79.3   80.3   80.7   81.8   82.1 |  84.6   80.7   79.4   81.5 |     81.5
  1981           |  81.2   81.4   81.6   80.9   81.4   81.8   82.3   81.8   80.9   80.1   78.8   77.7 |  81.4   81.4   81.7   78.9 |     80.8
  1982           |  76.3   77.8   77.1   76.2   75.4   75.0   74.2   73.7   73.0   72.2   71.9   71.1 |  77.1   75.6   73.6   71.7 |     74.5
                 |                                                                                    |                            |
  1983           |  72.5   72.3   72.9   73.7   74.5   74.8   76.1   77.0   78.2   78.7   78.6   78.9 |  72.6   74.4   77.1   78.7 |     75.7
  1984           |  80.4   80.1   80.8   81.0   81.3   81.5   81.5   81.3   81.0   80.5   80.4   79.8 |  80.4   81.3   81.3   80.2 |     80.8
  1985           |  79.9   80.4   80.4   80.3   80.3   79.9   79.4   79.6   79.9   79.0   79.2   79.5 |  80.2   80.2   79.6   79.2 |     79.8
  1986           |  79.8   79.2   78.2   78.7   78.4   78.1   78.2   78.3   78.2   78.8   79.1   79.7 |  79.1   78.4   78.2   79.2 |     78.7
  1987           |  79.1   80.0   80.2   80.5   80.7   81.4   81.8   81.8   81.6   82.6   82.8   83.2 |  79.8   80.8   81.7   82.9 |     81.3
                 |                                                                                    |                            |
  1988           |  83.2   83.4   83.3   83.7   83.7   83.6   84.1   84.5   84.1   84.2   84.8   85.1 |  83.3   83.7   84.2   84.7 |     84.0
  1989           |  85.4   84.6   85.3   85.3   84.7   84.4   83.4   83.6   83.3   82.8   83.0   83.2 |  85.1   84.8   83.4   83.0 |     84.1
  1990           |  82.7   83.0   83.3   82.7   82.9   82.7   82.6   82.6   82.6   82.0   80.8   80.2 |  83.0   82.8   82.6   81.0 |     82.3
  1991           |  79.6   78.9   78.1   78.2   78.7   79.6   79.5   79.5   80.2   80.0   79.8   79.2 |  78.9   78.8   79.7   79.6 |     79.3
  1992           |  79.0   79.3   79.8   80.3   80.3   80.1   80.7   80.3   80.4   80.7   81.0   80.9 |  79.4   80.2   80.5   80.9 |     80.2
                 |                                                                                    |                            |
  1993           |  81.1   81.3   81.2   81.4   80.9   80.9   81.0   80.6   81.3   81.4   81.6   82.1 |  81.2   81.1   81.0   81.7 |     81.2
  1994           |  82.1   82.1   82.6   82.8   83.1   83.3   83.3   83.4   83.3   83.6   83.8   84.4 |  82.3   83.1   83.3   84.0 |     83.2
  1995           |  84.5   84.2   83.9   83.4   83.3   83.3   82.5   83.2   83.2   82.8   82.7   82.5 |  84.2   83.3   83.0   82.7 |     83.3
  1996           |  81.9   82.5   82.0   82.5   82.7   82.9   82.7   82.9   83.0   82.6   83.0   83.1 |  82.1   82.7   82.9   82.9 |     82.7
  1997           |  83.1   83.6   83.3   83.4   83.3   83.3   83.2   83.6   83.7   83.8   83.9   83.6 |  83.3   83.3   83.5   83.8 |     83.5
                 |                                                                                    |                            |
  1998           |  83.6   83.1   82.9   82.9   82.7   81.8   81.2   82.4   81.8   82.0   81.3   81.1 |  83.2   82.5   81.8   81.5 |     82.2
  1999           |  81.3   81.2   81.3   81.1   81.2   81.2   81.4   81.5   81.3   81.7   81.7   82.0 |  81.3   81.2   81.4   81.8 |     81.4
  2000           |  81.9   82.1   82.3   82.5   82.7   82.8   82.1   81.9   81.7   81.2   80.7   80.2 |  82.1   82.6   81.9   80.7 |     81.8
  2001           |  79.3   78.9   78.5   77.8   77.5   76.7   76.7   76.3   75.5   74.6               |  78.9   77.4   76.2        |         
 ---------------------------------------------------------------------------------------------------------------------------------------------
 <1> Estimates from August 2001 through October 2001 are subject to further revision in the upcoming monthly releases.
 <2> Annual averages of industrial production are calculated from not seasonally adjusted indexes.



1Table 2
 INDUSTRIAL PRODUCTION, CAPACITY AND UTILIZATION <1>: Manufacturing
 Seasonally adjusted


 ---------------------------------------------------------------------------------------------------------------------------------------------
                 |                                                                                    |                            |
                 |   Jan.   Feb.   Mar.   Apr.    May   June   July   Aug.  Sept.   Oct.   Nov.   Dec.|     Q1     Q2     Q3     Q4|Annual <2>
 ---------------------------------------------------------------------------------------------------------------------------------------------
                 |                                                                                    |                            |
 IP (percent     |                                                                                    |                            |
 change)         |                                                                                    |                            |
  1979           |   -.3     .7     .4   -1.5    1.5     .1    -.5    -.9     .0     .5    -.7    -.1 |   3.4     .3   -2.4   -1.5 |      3.6
  1980           |    .2     .3    -.4   -2.1   -3.1   -1.5    -.7    1.7    1.5    1.1    1.7     .3 |   -.4  -17.7   -4.7   16.8 |     -3.9
  1981           |   -.6     .6     .3     .2     .7    -.1     .6    -.8    -.8   -1.1   -1.6   -1.6 |   2.5    4.2    -.1  -13.1 |      1.6
  1982           |  -2.0    2.9    -.7    -.9    -.4     .0    -.8    -.5    -.5   -1.2    -.3    -.7 |  -7.6   -2.7   -5.6   -8.0 |     -5.9
                 |                                                                                    |                            |
  1983           |   2.5     .4    1.4    1.1    1.4     .8    1.5    1.1    2.2     .6     .3    -.1 |  11.5   14.7   17.1   11.2 |      5.7
  1984           |   2.5     .6     .7     .5     .4     .7     .3     .1    -.2     .0     .1    -.3 |  13.2    6.6    3.4    -.4 |      9.9
  1985           |    .1     .6     .7     .2     .5    -.3    -.4     .9     .4    -.8    1.1    -.1 |   2.1    4.2    1.1    1.6 |      2.3
  1986           |   1.5    -.5    -.9    1.4    -.1    -.3     .3     .6     .0     .8     .4    1.2 |   4.5    1.7    1.7    6.7 |      2.8
  1987           |   -.8    1.6     .2     .5     .3    1.0     .7    -.2     .1    1.3     .5     .6 |   5.0    7.0    5.5    7.6 |      5.3
                 |                                                                                    |                            |
  1988           |   -.2     .4    -.1    1.0    -.1     .0     .7     .3     .2     .2     .9     .6 |   2.3    4.1    3.7    5.2 |      4.7
  1989           |    .9   -1.2     .8     .1    -.7     .0   -1.1     .3    -.3    -.6     .4     .1 |   4.3    -.7   -4.5   -1.4 |      1.9
  1990           |   -.2     .9     .3    -.8     .4    -.1     .0     .3    -.1    -.6   -1.3    -.6 |   2.9    -.1     .8   -6.3 |      -.5
  1991           |   -.9    -.7   -1.1     .3     .7    1.4     .2     .2    1.1    -.1    -.2    -.5 |  -9.7    1.2    7.8    1.7 |     -2.4
  1992           |    .1     .7    1.0     .6     .4     .0     .9    -.3     .3     .5     .6    -.1 |   2.0    7.4    4.1    3.7 |      4.0
                 |                                                                                    |                            |
  1993           |    .7     .2     .2     .5    -.3     .0     .2    -.3    1.1     .4     .5     .9 |   4.2    2.1    1.3    6.9 |      3.7
  1994           |    .1     .4    1.1     .8     .8     .3     .5     .6     .3     .9     .8    1.1 |   5.9    9.4    6.0    9.0 |      6.1
  1995           |    .6    -.1     .2    -.3     .1     .5    -.7    1.2     .7     .0     .1     .1 |   6.4     .4    3.0    4.2 |      5.3
  1996           |   -.3    1.2    -.2    1.2     .8     .9     .6     .6     .6     .0    1.0     .7 |   2.4    9.2    8.4    6.2 |      4.9
  1997           |    .4    1.2     .3     .5     .4     .7     .4    1.3     .6     .6     .7     .3 |   8.8    6.8    8.9    8.7 |      7.9
                 |                                                                                    |                            |
  1998           |    .9     .0     .2     .7     .2    -.7    -.2    2.3    -.2     .8    -.2     .2 |   6.0    3.0    3.2    5.2 |      5.9
  1999           |    .6     .4     .2     .2     .6     .1     .4     .8     .0     .8     .6     .6 |   3.9    3.6    4.8    6.9 |      4.2
  2000           |    .3     .5     .9     .3     .7     .5    -.4    -.1     .1    -.5    -.5    -.7 |   6.3    7.1     .4   -4.0 |      4.8
  2001           |   -.8    -.3    -.4    -.8    -.2   -1.0     .2    -.6   -1.0   -1.3               |  -7.1   -6.2   -5.0        |         
                 |                                                                                    |                            |
 IP (1992=100)   |                                                                                    |                            |
  1999           | 141.8  142.4  142.7  143.0  143.8  143.9  144.4  145.6  145.7  146.8  147.7  148.6 | 142.3  143.6  145.2  147.7 |    144.7
  2000           | 149.0  149.8  151.1  151.6  152.6  153.3  152.7  152.6  152.8  152.0  151.2  150.1 | 149.9  152.5  152.7  151.1 |    151.6
  2001           | 148.9  148.4  147.9  146.7  146.4  145.0  145.2  144.4  142.9  141.1               | 148.4  146.0  144.2        |         
                 |                                                                                    |                            |
 Capacity        |                                                                                    |                            |
 (percent of     |                                                                                    |                            |
 1992 output)    |                                                                                    |                            |
  1999           | 176.1  176.8  177.4  178.0  178.6  179.2  179.8  180.4  181.1  181.7  182.4  183.1 | 176.8  178.6  180.4  182.4 |    179.5
  2000           | 183.8  184.6  185.4  186.1  186.9  187.7  188.4  189.1  189.8  190.4  191.0  191.5 | 184.6  186.9  189.1  191.0 |    187.9
  2001           | 192.0  192.4  192.7  193.0  193.2  193.4  193.5  193.6  193.8  193.9               | 192.3  193.2  193.6        |         
                 |                                                                                    |                            |
 Utilization     |                                                                                    |                            |
 (percent)       |                                                                                    |                            |
  1979           |  86.4   86.7   86.9   85.3   86.4   86.3   85.6   84.5   84.3   84.5   83.6   83.3 |  86.7   86.0   84.8   83.8 |     85.3
  1980           |  83.3   83.3   82.7   80.8   78.1   76.7   75.9   77.0   77.9   78.6   79.7   79.7 |  83.1   78.5   76.9   79.3 |     79.5
  1981           |  79.0   79.2   79.3   79.3   79.6   79.3   79.6   78.8   78.0   77.0   75.6   74.2 |  79.2   79.4   78.8   75.6 |     78.3
  1982           |  72.6   74.6   73.9   73.1   72.7   72.6   71.8   71.4   70.9   69.9   69.6   69.0 |  73.7   72.8   71.4   69.5 |     71.8
                 |                                                                                    |                            |
  1983           |  70.6   70.8   71.8   72.5   73.4   73.9   74.8   75.6   77.2   77.6   77.7   77.5 |  71.1   73.2   75.9   77.6 |     74.4
  1984           |  79.3   79.5   79.8   80.0   80.1   80.3   80.4   80.2   79.8   79.6   79.5   79.0 |  79.5   80.1   80.1   79.4 |     79.8
  1985           |  78.9   79.1   79.3   79.2   79.4   78.9   78.3   78.8   78.8   77.9   78.5   78.2 |  79.1   79.2   78.6   78.2 |     78.8
  1986           |  79.1   78.6   77.8   78.7   78.5   78.1   78.2   78.6   78.4   78.9   79.1   79.9 |  78.5   78.5   78.4   79.3 |     78.7
  1987           |  79.1   80.2   80.3   80.6   80.7   81.4   81.8   81.5   81.5   82.5   82.8   83.1 |  79.9   80.9   81.6   82.8 |     81.3
                 |                                                                                    |                            |
  1988           |  82.9   83.1   82.9   83.7   83.5   83.4   83.8   84.0   84.0   84.1   84.8   85.1 |  83.0   83.5   83.9   84.7 |     83.8
  1989           |  85.7   84.5   85.0   85.0   84.2   84.1   83.0   83.1   82.7   82.1   82.2   82.1 |  85.1   84.4   82.9   82.1 |     83.6
  1990           |  81.8   82.5   82.6   81.8   82.0   81.8   81.6   81.7   81.5   80.9   79.7   79.0 |  82.3   81.9   81.6   79.9 |     81.4
  1991           |  78.2   77.5   76.6   76.8   77.1   78.1   78.2   78.2   79.0   78.9   78.6   78.1 |  77.5   77.3   78.5   78.5 |     77.9
  1992           |  78.0   78.4   79.0   79.4   79.5   79.4   80.0   79.6   79.7   79.9   80.2   80.0 |  78.5   79.4   79.8   80.0 |     79.4
                 |                                                                                    |                            |
  1993           |  80.4   80.4   80.4   80.6   80.2   80.0   80.1   79.7   80.4   80.5   80.7   81.2 |  80.4   80.3   80.0   80.8 |     80.4
  1994           |  81.1   81.1   81.8   82.2   82.5   82.5   82.6   82.8   82.7   83.1   83.4   84.0 |  81.3   82.4   82.7   83.5 |     82.5
  1995           |  84.1   83.7   83.5   82.9   82.6   82.6   81.7   82.3   82.5   82.1   81.8   81.5 |  83.8   82.7   82.1   81.8 |     82.6
  1996           |  80.9   81.4   80.8   81.3   81.5   81.8   81.9   82.0   82.1   81.7   82.1   82.2 |  81.0   81.6   82.0   82.0 |     81.6
  1997           |  82.1   82.7   82.5   82.5   82.4   82.5   82.4   83.0   83.0   83.0   83.0   82.7 |  82.5   82.5   82.8   82.9 |     82.7
                 |                                                                                    |                            |
  1998           |  83.0   82.4   82.1   82.2   81.8   80.8   80.1   81.5   80.9   81.2   80.6   80.4 |  82.5   81.6   80.9   80.7 |     81.4
  1999           |  80.5   80.6   80.4   80.3   80.5   80.3   80.3   80.7   80.5   80.8   81.0   81.1 |  80.5   80.4   80.5   81.0 |     80.6
  2000           |  81.0   81.1   81.5   81.4   81.6   81.7   81.0   80.7   80.5   79.8   79.2   78.4 |  81.2   81.6   80.7   79.1 |     80.7
  2001           |  77.6   77.2   76.7   76.0   75.8   75.0   75.1   74.6   73.7   72.8               |  77.2   75.6   74.4        |         
 ---------------------------------------------------------------------------------------------------------------------------------------------
 <1> Estimates from August 2001 through October 2001 are subject to further revision in the upcoming monthly releases.
 <2> Annual averages of industrial production are calculated from not seasonally adjusted indexes.



1Table 3
 INDUSTRIAL PRODUCTION, CAPACITY AND UTILIZATION <1>: Total Industry Excluding Selected High-Technology Industries <2>
 Seasonally adjusted


 ---------------------------------------------------------------------------------------------------------------------------------------------
                 |                                                                                    |                            |
                 |   Jan.   Feb.   Mar.   Apr.    May   June   July   Aug.  Sept.   Oct.   Nov.   Dec.|     Q1     Q2     Q3     Q4|Annual <3>
 ---------------------------------------------------------------------------------------------------------------------------------------------
                 |                                                                                    |                            |
 IP (percent     |                                                                                    |                            |
 change)         |                                                                                    |                            |
  1979           |   -.7     .8     .2   -1.1    1.1    -.1    -.8    -.5     .0     .3    -.6    -.3 |    .9    -.1   -3.5   -1.4 |      2.2
  1980           |    .3     .0    -.1   -2.2   -2.7   -1.3    -.8    1.2    1.6     .6    1.6     .5 |   -.7  -16.6   -4.9   13.8 |     -4.0
  1981           |   -.9     .4     .4    -.8     .8     .5     .9    -.5   -1.0    -.8   -1.6   -1.4 |   1.3    1.1    3.2  -11.8 |       .8
  1982           |  -1.6    2.0    -.8    -.9    -.9    -.4   -1.0    -.4   -1.0   -1.0    -.3   -1.2 |  -7.7   -5.8   -8.2   -9.1 |     -6.5
                 |                                                                                    |                            |
  1983           |   2.5    -.4     .8    1.2    1.2     .4    1.8    1.4    1.6     .6    -.2     .5 |   6.9   10.6   16.8    8.7 |      2.8
  1984           |   1.9    -.3    1.0     .4     .4     .3     .1    -.1    -.2    -.5     .0    -.5 |   9.7    5.3    1.0   -3.5 |      7.5
  1985           |    .3     .9     .2     .1     .2    -.1    -.5     .6     .7    -.8     .3     .7 |   2.3    2.5     .5    1.0 |       .9
  1986           |    .7    -.8   -1.1     .8    -.3    -.2     .0     .2    -.2    1.0     .4    1.0 |   1.7   -1.8    -.6    6.3 |       .8
  1987           |   -.8    1.2     .3     .4     .5     .8     .5     .1    -.2    1.3     .3     .5 |   3.5    6.8    5.0    6.5 |      4.2
                 |                                                                                    |                            |
  1988           |    .1     .2     .1     .4    -.2     .1     .6     .5    -.3     .4     .6     .5 |   2.8    1.8    3.3    3.5 |      3.9
  1989           |    .5    -.7     .9     .1    -.7    -.3    -.9     .4    -.3    -.3     .2     .3 |   3.5    -.3   -4.8    -.4 |      1.4
  1990           |   -.4     .5     .5    -.5     .3    -.1     .0     .1     .2    -.6   -1.4    -.7 |   1.7     .6     .7   -6.4 |      -.5
  1991           |   -.5    -.9   -1.0     .4     .8    1.2     .1     .0    1.0    -.2    -.2    -.7 |  -8.8    1.4    6.1     .4 |     -2.4
  1992           |   -.3     .5     .8     .7     .2    -.3     .8    -.4     .3     .4     .5     .1 |   -.9    5.8    2.2    3.3 |      2.2
                 |                                                                                    |                            |
  1993           |    .4     .4     .1     .3    -.5     .2     .2    -.3     .9     .3     .4     .7 |   3.5     .8    1.0    5.3 |      2.7
  1994           |    .2     .3     .6     .3     .5     .4     .2     .3     .1     .6     .5     .8 |   4.8    5.5    3.3    5.3 |      4.1
  1995           |    .2    -.2    -.1    -.4     .1     .3    -.6    1.1     .1    -.4     .1     .0 |   2.8   -1.4    1.4     .3 |      2.4
  1996           |   -.5    1.1    -.3     .8     .5     .5    -.1     .3     .3    -.3     .8     .4 |    .6    6.1    3.2    2.8 |      2.0
  1997           |    .2     .9    -.2     .4     .1     .3     .2     .8     .6     .6     .3    -.2 |   4.9    2.8    5.0    6.1 |      4.1
                 |                                                                                    |                            |
  1998           |    .2    -.2     .3     .5     .2    -.9    -.6    1.8    -.5     .5    -.5    -.2 |    .7    1.9    -.4    1.3 |      2.5
  1999           |    .4     .0     .2    -.1     .3    -.1     .2     .4    -.1     .6     .1     .3 |    .7     .8    2.1    3.7 |      1.1
  2000           |   -.2     .3     .2     .2     .3     .3    -.7     .0    -.1    -.5    -.4    -.5 |   1.2    2.8   -2.0   -3.9 |      1.3
  2001           |   -.7    -.2    -.3    -.4    -.1    -.8     .3    -.4    -.9   -1.2               |  -5.4   -3.9   -3.3        |         
                 |                                                                                    |                            |
 IP (1992=100)   |                                                                                    |                            |
  1999           | 119.6  119.6  119.9  119.7  120.1  120.0  120.3  120.7  120.6  121.4  121.6  122.0 | 119.7  119.9  120.6  121.7 |    120.5
  2000           | 121.7  122.0  122.3  122.5  122.9  123.2  122.3  122.3  122.2  121.6  121.1  120.5 | 122.0  122.8  122.2  121.0 |    122.0
  2001           | 119.6  119.4  119.1  118.6  118.5  117.6  117.9  117.4  116.3  115.0               | 119.4  118.2  117.2        |         
                 |                                                                                    |                            |
 Capacity        |                                                                                    |                            |
 (percent of     |                                                                                    |                            |
 1992 output)    |                                                                                    |                            |
  1999           | 147.1  147.3  147.6  147.8  148.0  148.2  148.4  148.6  148.7  148.8  149.0  149.1 | 147.3  148.0  148.6  148.9 |    148.2
  2000           | 149.2  149.3  149.4  149.5  149.6  149.7  149.7  149.8  149.9  150.0  150.1  150.2 | 149.3  149.6  149.8  150.1 |    149.7
  2001           | 150.2  150.3  150.4  150.5  150.5  150.6  150.7  150.7  150.8  150.8               | 150.3  150.5  150.7        |         
                 |                                                                                    |                            |
 Utilization     |                                                                                    |                            |
 (percent)       |                                                                                    |                            |
  1979           |  86.6   87.1   87.1   86.1   86.8   86.6   85.8   85.2   85.1   85.3   84.7   84.3 |  86.9   86.5   85.4   84.7 |     85.9
  1980           |  84.4   84.3   84.1   82.1   79.8   78.7   78.0   78.8   80.0   80.4   81.6   81.8 |  84.3   80.2   78.9   81.3 |     81.2
  1981           |  81.0   81.2   81.5   80.7   81.3   81.6   82.2   81.6   80.7   79.9   78.5   77.3 |  81.2   81.2   81.5   78.6 |     80.6
  1982           |  76.0   77.4   76.7   75.9   75.1   74.7   73.9   73.5   72.6   71.8   71.5   70.5 |  76.7   75.2   73.3   71.3 |     74.1
                 |                                                                                    |                            |
  1983           |  72.3   72.0   72.6   73.4   74.2   74.5   75.8   76.8   78.0   78.4   78.2   78.6 |  72.3   74.0   76.9   78.4 |     75.4
  1984           |  80.0   79.7   80.4   80.6   80.8   81.0   80.9   80.7   80.5   80.0   79.9   79.3 |  80.1   80.8   80.7   79.7 |     80.3
  1985           |  79.5   80.0   80.1   80.0   80.0   79.8   79.3   79.6   80.0   79.1   79.2   79.6 |  79.9   79.9   79.6   79.3 |     79.7
  1986           |  80.1   79.4   78.5   79.0   78.7   78.5   78.4   78.5   78.3   79.0   79.3   80.0 |  79.3   78.7   78.4   79.4 |     79.0
  1987           |  79.4   80.2   80.5   80.8   81.1   81.7   82.1   82.2   81.9   83.0   83.2   83.5 |  80.0   81.2   82.1   83.2 |     81.6
                 |                                                                                    |                            |
  1988           |  83.6   83.7   83.7   84.0   83.8   83.9   84.3   84.6   84.3   84.6   85.0   85.3 |  83.7   83.9   84.4   85.0 |     84.2
  1989           |  85.7   85.0   85.6   85.6   84.9   84.6   83.6   83.9   83.5   83.2   83.3   83.4 |  85.4   85.0   83.7   83.3 |     84.4
  1990           |  83.0   83.3   83.7   83.1   83.3   83.1   83.0   83.0   83.0   82.4   81.1   80.5 |  83.3   83.2   83.0   81.4 |     82.7
  1991           |  80.0   79.2   78.4   78.6   79.1   80.0   80.0   79.9   80.6   80.4   80.2   79.5 |  79.2   79.2   80.2   80.0 |     79.7
  1992           |  79.2   79.5   80.1   80.5   80.6   80.3   80.9   80.4   80.5   80.8   81.0   81.0 |  79.6   80.5   80.6   80.9 |     80.4
                 |                                                                                    |                            |
  1993           |  81.2   81.4   81.4   81.5   81.0   81.0   81.1   80.8   81.4   81.5   81.8   82.2 |  81.3   81.2   81.1   81.8 |     81.3
  1994           |  82.2   82.3   82.7   82.8   83.1   83.3   83.3   83.3   83.2   83.5   83.7   84.2 |  82.4   83.1   83.3   83.8 |     83.1
  1995           |  84.2   83.9   83.6   83.1   83.1   83.1   82.4   83.2   83.1   82.6   82.5   82.3 |  83.9   83.1   82.9   82.5 |     83.1
  1996           |  81.7   82.4   82.0   82.5   82.8   83.0   82.8   82.9   83.0   82.6   83.1   83.2 |  82.1   82.8   82.9   83.0 |     82.7
  1997           |  83.2   83.7   83.3   83.5   83.3   83.3   83.3   83.7   84.0   84.2   84.2   83.8 |  83.4   83.4   83.7   84.1 |     83.6
                 |                                                                                    |                            |
  1998           |  83.7   83.2   83.2   83.3   83.2   82.2   81.4   82.6   82.0   82.2   81.5   81.1 |  83.4   82.9   82.0   81.6 |     82.5
  1999           |  81.3   81.2   81.2   81.0   81.1   80.9   81.1   81.3   81.1   81.6   81.6   81.8 |  81.2   81.0   81.2   81.7 |     81.3
  2000           |  81.6   81.8   81.8   81.9   82.2   82.3   81.7   81.6   81.5   81.1   80.7   80.2 |  81.7   82.1   81.6   80.7 |     81.5
  2001           |  79.6   79.5   79.2   78.8   78.7   78.1   78.3   77.9   77.2   76.2               |  79.4   78.5   77.8        |         
 ---------------------------------------------------------------------------------------------------------------------------------------------
 <1> Estimates from August 2001 through October 2001 are subject to further revision in the upcoming monthly releases.
 <2> Computers, communications equipment, and semiconductors and related electronic components.
 <3> Annual averages of industrial production are calculated from not seasonally adjusted indexes.



1Table 4
 INDUSTRIAL PRODUCTION, CAPACITY AND UTILIZATION <1>: Manufacturing Excluding Selected High-Technology Industries <2>
 Seasonally adjusted


 ---------------------------------------------------------------------------------------------------------------------------------------------
                 |                                                                                    |                            |
                 |   Jan.   Feb.   Mar.   Apr.    May   June   July   Aug.  Sept.   Oct.   Nov.   Dec.|     Q1     Q2     Q3     Q4|Annual <3>
 ---------------------------------------------------------------------------------------------------------------------------------------------
                 |                                                                                    |                            |
 IP (percent     |                                                                                    |                            |
 change)         |                                                                                    |                            |
  1979           |   -.7     .7     .3   -1.7    1.4     .0    -.6   -1.1    -.1     .4    -.9    -.2 |   1.9   -1.2   -3.8   -2.9 |      2.2
  1980           |    .0     .1    -.6   -2.4   -3.4   -1.5    -.9    1.7    1.6    1.0    1.7     .2 |  -2.3  -19.9   -5.6   16.5 |     -5.4
  1981           |   -.6     .4     .2     .1     .7    -.3     .5    -.9   -1.1   -1.2   -1.8   -2.0 |   1.8    2.8   -1.7  -15.0 |       .5
  1982           |  -2.1    2.7    -.8    -.9    -.5    -.1   -1.0    -.3    -.9   -1.4    -.4   -1.1 |  -9.4   -3.4   -6.7  -10.2 |     -7.4
                 |                                                                                    |                            |
  1983           |   3.1     .3    1.3    1.0    1.4     .6    1.5    1.1    2.1     .4     .1    -.1 |  12.1   13.2   16.3    9.1 |      4.7
  1984           |   2.3     .4     .6     .3     .1     .5     .2    -.1    -.3     .0     .0    -.4 |  11.6    4.0    1.4   -1.3 |      8.1
  1985           |    .0     .6     .6     .1     .5    -.1    -.5     .9     .4    -.8     .8    -.1 |   1.2    4.0    1.4    1.1 |      1.5
  1986           |   1.6    -.6   -1.0    1.5    -.2    -.1    -.1     .6    -.1     .9     .3    1.3 |   4.4    1.9     .3    6.6 |      2.5
  1987           |  -1.0    1.6     .1     .6     .4     .9     .6    -.2     .0    1.3     .5     .5 |   4.1    7.1    4.8    6.9 |      4.8
                 |                                                                                    |                            |
  1988           |   -.2     .2     .1     .8    -.4     .0     .6     .1     .3     .4     .8     .5 |   1.8    2.6    2.9    5.3 |      4.0
  1989           |    .9   -1.1     .8     .0    -.7    -.1   -1.0     .3    -.3    -.4     .2    -.1 |   4.1   -1.7   -5.0   -1.8 |      1.4
  1990           |   -.1     .9     .4    -.7     .4    -.2     .1     .2     .0    -.7   -1.4    -.7 |   2.7    -.1     .4   -7.1 |      -.9
  1991           |   -.8    -.8   -1.2     .4     .7    1.5     .2     .1    1.2    -.2    -.3    -.6 | -10.3    1.0    7.8    1.0 |     -2.8
  1992           |   -.2     .6     .9     .6     .3    -.1     .8    -.4     .2     .3     .5    -.1 |    .1    6.4    2.8    2.3 |      2.9
                 |                                                                                    |                            |
  1993           |    .8     .1     .1     .5    -.4    -.1     .2    -.4    1.0     .3     .5     .7 |   4.0    1.3     .3    5.6 |      2.8
  1994           |    .0     .4     .8     .6     .6     .1     .4     .4     .1     .7     .6     .8 |   4.8    7.0    3.8    6.5 |      4.6
  1995           |    .3    -.4    -.1    -.5    -.1     .4    -.9    1.0     .4    -.4    -.1    -.1 |   2.8   -2.1     .5     .4 |      2.5
  1996           |   -.5    1.0    -.5    1.0     .5     .7     .3     .3     .3    -.4     .8     .5 |   -.4    6.7    4.9    2.6 |      1.9
  1997           |    .2     .9    -.1     .3     .1     .5     .1    1.1     .5     .6     .4    -.1 |   5.7    3.1    5.7    6.3 |      4.6
                 |                                                                                    |                            |
  1998           |    .5    -.3     .2     .6     .1   -1.0    -.7    2.1    -.5     .7    -.4    -.1 |   1.7    1.4    -.4    2.8 |      2.9
  1999           |    .3     .2     .0    -.1     .5    -.2     .0     .7    -.1     .6     .4     .2 |    .6     .8    1.8    4.5 |      1.4
  2000           |   -.2     .1     .4    -.1     .2     .3    -.7    -.3     .0    -.6    -.7    -.8 |   1.0    2.2   -2.5   -5.6 |      1.1
  2001           |   -.7    -.2    -.3    -.5     .0    -.8     .5    -.6   -1.0   -1.3               |  -6.3   -3.9   -3.2        |         
                 |                                                                                    |                            |
 IP (1992=100)   |                                                                                    |                            |
  1999           | 121.5  121.8  121.8  121.7  122.2  122.0  122.0  122.8  122.7  123.5  123.9  124.2 | 121.7  121.9  122.5  123.9 |    122.5
  2000           | 123.9  124.1  124.6  124.5  124.8  125.2  124.3  124.0  123.9  123.2  122.4  121.3 | 124.2  124.9  124.1  122.3 |    123.9
  2001           | 120.5  120.4  120.0  119.4  119.4  118.5  119.0  118.3  117.1  115.6               | 120.3  119.1  118.1        |         
                 |                                                                                    |                            |
 Capacity        |                                                                                    |                            |
 (percent of     |                                                                                    |                            |
 1992 output)    |                                                                                    |                            |
  1999           | 151.1  151.4  151.7  152.0  152.2  152.5  152.7  152.9  153.1  153.3  153.4  153.6 | 151.4  152.2  152.9  153.4 |    152.5
  2000           | 153.8  153.9  154.1  154.2  154.3  154.5  154.6  154.7  154.8  154.9  155.0  155.0 | 153.9  154.3  154.7  155.0 |    154.5
  2001           | 155.1  155.2  155.2  155.2  155.3  155.3  155.3  155.3  155.3  155.4               | 155.1  155.3  155.3        |         
                 |                                                                                    |                            |
 Utilization     |                                                                                    |                            |
 (percent)       |                                                                                    |                            |
  1979           |  86.3   86.7   86.8   85.2   86.2   86.0   85.4   84.2   84.0   84.2   83.3   83.0 |  86.6   85.8   84.5   83.5 |     85.1
  1980           |  82.8   82.8   82.2   80.1   77.2   75.9   75.1   76.3   77.4   78.0   79.2   79.2 |  82.6   77.8   76.3   78.8 |     78.8
  1981           |  78.6   78.8   78.9   78.8   79.3   78.9   79.2   78.4   77.5   76.5   75.0   73.4 |  78.8   79.0   78.4   75.0 |     77.8
  1982           |  71.9   73.8   73.2   72.5   72.0   71.9   71.1   70.9   70.2   69.2   68.8   68.0 |  72.9   72.1   70.7   68.7 |     71.1
                 |                                                                                    |                            |
  1983           |  70.1   70.3   71.2   71.9   72.9   73.3   74.4   75.2   76.8   77.0   77.1   77.0 |  70.5   72.7   75.5   77.1 |     73.9
  1984           |  78.7   79.0   79.3   79.4   79.3   79.6   79.6   79.4   79.0   78.9   78.8   78.4 |  79.0   79.4   79.3   78.7 |     79.1
  1985           |  78.2   78.5   78.8   78.7   78.9   78.7   78.1   78.7   78.8   78.0   78.5   78.2 |  78.5   78.8   78.5   78.2 |     78.5
  1986           |  79.4   78.8   78.0   79.0   78.8   78.6   78.4   78.8   78.6   79.2   79.3   80.2 |  78.7   78.8   78.6   79.6 |     78.9
  1987           |  79.3   80.5   80.5   80.9   81.1   81.8   82.2   82.0   81.9   82.9   83.2   83.6 |  80.1   81.3   82.0   83.2 |     81.7
                 |                                                                                    |                            |
  1988           |  83.3   83.5   83.4   84.0   83.6   83.6   84.1   84.1   84.3   84.5   85.1   85.4 |  83.4   83.8   84.2   85.0 |     84.1
  1989           |  86.1   85.0   85.5   85.3   84.5   84.3   83.2   83.4   82.9   82.5   82.5   82.3 |  85.5   84.7   83.2   82.4 |     83.9
  1990           |  82.1   82.8   83.0   82.3   82.4   82.1   82.1   82.1   81.9   81.3   80.0   79.3 |  82.6   82.3   82.0   80.2 |     81.8
  1991           |  78.5   77.8   76.8   77.0   77.5   78.5   78.6   78.6   79.5   79.3   78.9   78.4 |  77.7   77.7   78.9   78.9 |     78.3
  1992           |  78.2   78.6   79.2   79.6   79.7   79.6   80.1   79.7   79.8   79.9   80.1   80.0 |  78.7   79.6   79.9   80.0 |     79.5
                 |                                                                                    |                            |
  1993           |  80.5   80.4   80.4   80.7   80.3   80.1   80.2   79.7   80.5   80.5   80.8   81.3 |  80.5   80.4   80.1   80.9 |     80.5
  1994           |  81.1   81.3   81.8   82.1   82.5   82.4   82.5   82.7   82.6   83.0   83.3   83.8 |  81.4   82.3   82.6   83.3 |     82.4
  1995           |  83.8   83.3   83.0   82.5   82.3   82.4   81.5   82.1   82.2   81.7   81.4   81.2 |  83.4   82.4   81.9   81.4 |     82.3
  1996           |  80.6   81.2   80.6   81.3   81.5   81.8   81.9   82.0   82.0   81.5   82.0   82.2 |  80.8   81.5   82.0   81.9 |     81.6
  1997           |  82.2   82.8   82.5   82.5   82.3   82.5   82.4   83.0   83.1   83.3   83.4   82.9 |  82.5   82.5   82.8   83.2 |     82.7
                 |                                                                                    |                            |
  1998           |  83.0   82.5   82.3   82.5   82.2   81.1   80.3   81.7   81.0   81.3   80.7   80.4 |  82.6   81.9   81.0   80.8 |     81.6
  1999           |  80.4   80.4   80.2   80.0   80.3   80.0   79.9   80.3   80.2   80.6   80.8   80.8 |  80.4   80.1   80.1   80.7 |     80.3
  2000           |  80.6   80.6   80.9   80.8   80.9   81.1   80.4   80.1   80.1   79.5   79.0   78.3 |  80.7   80.9   80.2   78.9 |     80.2
  2001           |  77.7   77.6   77.4   76.9   76.9   76.3   76.6   76.2   75.4   74.4               |  77.5   76.7   76.1        |         
 ---------------------------------------------------------------------------------------------------------------------------------------------
 <1> Estimates from August 2001 through October 2001 are subject to further revision in the upcoming monthly releases.
 <2> Computers, communications equipment, and semiconductors and related electronic components.
 <3> Annual averages of industrial production are calculated from not seasonally adjusted indexes.







1Table 5
 RATES OF CHANGE IN INDUSTRIAL PRODUCTION, BY MAJOR MARKET GROUP, 1997-2001 <1>


 -------------------------------------------------------------------------------------------------------------------------------------
                                                   |                                         |           Difference between
                                                   |             Revised change              |       revised and earlier changes
                                                   |                (percent)                |           (percentage points)
 Item                                              |    1997    1998    1999    2000    2001 |    1997    1998    1999    2000    2001
 -------------------------------------------------------------------------------------------------------------------------------------
                                                   |                                         |
  Total IP                                         |    7.4     3.5     4.3     2.6    -5.6  |     .2      .3     -.7    -1.6     -.1
                                                   |                                         |
  MARKET GROUPS                                    |                                         |
  Products                                         |    6.0     2.9     2.6     1.8    -4.5  |     .0     -.3     -.8    -1.2      .2
     Consumer goods                                |    3.7      .2     2.5      .7    -1.2  |    -.3      .0     -.6      .1      .5
        Durable                                    |    7.6     5.6     6.7    -4.2     -.7  |    -.8     1.3    -1.5      .2     -.1
           Automotive products                     |    8.8     7.4     5.8    -7.3     7.3  |   -1.8     2.1     2.5     -.4      .4
           Home electronics                        |   19.5    12.4    30.8     7.4   -27.7  |    -.3      .7   -22.6     4.5    -3.6
           Appliances, furniture, carpeting        |    4.4     6.0     2.6    -2.0    -2.9  |     .2     -.9    -3.4     -.7    -1.0
           Miscellaneous goods                     |    4.4     -.4     3.8    -2.0    -8.9  |    -.1     2.1     -.8     2.2    -2.5
                                                   |                                         |
        Nondurable                                 |    2.6    -1.3     1.3     2.2    -1.3  |    -.1     -.4     -.4      .2      .6
           Non-energy                              |    2.8    -1.0     1.2     1.1     -.1  |    -.1     -.5     -.4     -.1     1.1
              Foods and tobacco                    |    1.9     -.1      .7      .4    -1.1  |    -.3     -.7      .4     -.5      .5
              Clothing                             |   -3.3    -6.4    -2.8    -8.5    -9.7  |    -.2     1.8     2.1    -4.1     2.3
              Chemical products                    |    4.9     2.5     4.4     5.4     6.6  |    -.5     -.8    -1.4     2.9     2.8
              Paper products                       |    6.5    -6.1      .1     2.4    -2.7  |    1.3     -.8    -2.5     -.8      .9
           Energy                                  |    1.6    -3.4     2.3     8.6    -7.4  |    -.2      .6     -.3     1.9    -1.9
                                                   |                                         |
     Business equipment                            |   14.0     8.4     4.4     5.8   -11.9  |     .8     -.6    -1.2    -5.2    -1.0
        Transit                                    |   25.5    15.4    -3.9    -7.5    -7.9  |    2.1     2.5     5.0     1.3     -.6
        Information processing                     |   17.9    14.4    15.6    16.4   -12.5  |    1.4    -2.4    -5.4    -6.7    -2.3
        Industrial and other                       |    5.8     -.5    -1.8     3.0   -13.5  |    -.3     -.4     -.2    -5.6     -.2
                                                   |                                         |
     Defense and space equipment                   |   -2.5     5.5    -7.6    -2.2    -1.3  |    2.5    -2.7    -4.6     1.1    -1.6
                                                   |                                         |
     Construction supplies                         |    4.0     6.6     3.9      .5    -2.2  |     .1     -.9     -.6      .2      .6
     Business supplies                             |    4.2     1.3     1.4      .9    -7.2  |    -.6     -.5     -.8     -.3      .7
                                                   |                                         |
  Materials                                        |    9.5     4.5     7.2     3.9    -7.2  |     .1      .8     -.8    -2.4     -.5
     Durable                                       |   14.3     8.8    10.4     7.5    -8.7  |     .2     1.6     -.5    -4.6     -.7
        Consumer parts                             |    8.5     3.6     5.9    -2.1    -2.9  |   -1.8     3.5    -1.2    -2.3     2.8
        Equipment parts                            |   28.6    22.0    19.7    25.1   -14.5  |    2.5     1.4    -2.3   -11.0    -4.0
        Other                                      |    4.7      .2     4.4    -3.1    -5.9  |    -.7      .7      .9    -1.3     1.0
                                                   |                                         |
     Nondurable                                    |    5.7    -3.3     3.9    -4.7    -7.4  |     .5     -.5    -1.7      .5     1.1
        Textile                                    |    4.9    -6.2     4.6   -12.8   -11.7  |    1.5     2.2     5.9    -3.2     3.7
        Paper                                      |    4.3    -2.7     4.5    -4.5    -5.5  |    -.3      .2      .3      .0      .1
        Chemical                                   |    6.5    -5.6     5.3    -4.2    -9.3  |     .2    -1.6    -4.2     2.0     1.1
                                                   |                                         |
     Energy                                        |     .1     -.4      .6     1.6    -3.1  |     .0      .3      .1      .2    -1.9
                                                   |                                         |
                                                   |                                         |
  INDUSTRY GROUPS                                  |                                         |
  Manufacturing                                    |    8.3     4.3     4.8     2.3    -6.1  |     .3      .3     -.8    -1.9      .1
     Durable                                       |   11.9     8.4     6.9     4.8    -8.0  |     .4      .4    -1.3    -3.6     -.5
        Lumber and products   24                   |    2.8     5.6     1.8    -6.8     1.0  |    -.9      .1     1.3      .6    -1.0
        Furniture and fixtures   25                |    8.1     6.1     5.0      .8    -7.3  |     .2     -.2     1.9    -4.8      .2
        Stone, clay, and glass products   32       |    2.5     5.8     3.2     -.9    -2.0  |    -.9      .2     1.0    -1.8      .7
        Primary metals   33                        |    5.8    -3.5     6.7    -5.2    -9.1  |    -.2      .0    -1.3      .5    -2.2
        Fabricated metals   34                     |    6.5     1.7     1.2     2.2    -6.1  |     .3      .2     -.5     1.3     1.4
        Industrial machinery and equipment   35    |    7.8     9.1     7.1     7.5   -11.8  |     .5    -2.5    -6.5    -6.9     1.3
        Electrical machinery   36                  |   31.3    22.2    23.7    27.3   -19.0  |    2.9     1.8    -1.5   -11.7    -5.0
        Motor vehicles and parts   371             |   14.3     6.7     7.5    -8.0     3.0  |   -1.7     3.5     1.6    -1.6      .7
        Aerospace and miscellaneous                |                                         |
              transportation equipment   372-6,9   |   13.7    11.3    -8.9      .2    -6.0  |     .8      .9     2.7      .5     -.4
        Instruments   38                           |    2.9     4.2      .6     1.3    -4.1  |     .0      .3    -3.9     -.6     -.9
        Miscellaneous   39                         |    2.0     -.5     4.8    -1.0    -6.5  |   -1.1    -1.2    -1.9    -1.0    -1.5
                                                   |                                         |
     Nondurable                                    |    3.9     -.7     2.1     -.7    -3.8  |    -.3     -.3     -.5      .0      .9
        Food and tobacco products   20,21          |    2.6      .1      .7      .4    -1.1  |    -.1     -.7      .4     -.4      .5
        Textile mill products   22                 |     .7    -6.1      .4   -10.6    -9.6  |    -.8      .4      .6    -2.7     3.7
        Apparel products   23                      |    1.8    -3.1      .3    -6.7    -8.7  |    2.0     3.3     4.3    -1.4     -.2
        Paper and products   26                    |    4.5     -.5     2.3    -3.0    -5.6  |    -.4     -.4     -.6      .1      .5
        Printing and publishing   27               |    5.1    -2.4      .7      .5    -8.2  |     .0     -.6    -1.1    -1.0     1.3
        Chemicals and products   28                |    4.8     -.6     4.1      .8    -1.6  |    -.5     -.7    -2.6     2.2     2.0
        Petroleum products   29                    |    3.0     1.3     -.6     2.0    -2.2  |    -.1     -.8     -.7      .8     -.4
        Rubber and plastics products   30          |    6.1     3.0     5.9    -2.8    -4.0  |    -.9     1.4     2.3     -.9      .1
                                                   |                                         |
  Mining            10-14                          |    1.4    -5.3     -.2     1.7     1.1  |    -.1      .1      .3      .3    -2.0
  Utilities            491,2,3pt                   |    2.0     -.6     2.2     6.8    -6.1  |    -.3      .7     -.1      .2    -1.0
     Electric                                      |    2.8     1.8     1.8     5.2    -4.0  |    -.4      .3      .1    -1.1      .2
     Gas                                           |   -1.4   -11.5     4.7    12.9   -12.9  |     .1      .4      .1     5.4    -5.3
 -------------------------------------------------------------------------------------------------------------------------------------

 <1> Rates of change are calculated as the percent change in the seasonally adjusted index from the fourth quarter of the
     previous year to the fourth quarter of the year specified in the column heading.  For 2001, the rates of change are
     calculated from the fourth quarter of 2000 to the third quarter of 2001 and annualized.
















1Table 6
 RATES OF CHANGE IN INDUSTRIAL PRODUCTION, BY INDUSTRY GROUPS, 1997-2001 <1>


 -------------------------------------------------------------------------------------------------------------------------------------
                                                   |                                         |           Difference between
                                                   |             Revised change              |       revised and earlier changes
                                                   |                (percent)                |           (percentage points)
 Item                                              |    1997    1998    1999    2000    2001 |    1997    1998    1999    2000    2001
 -------------------------------------------------------------------------------------------------------------------------------------
                                                   |                                         |
  Total industry                                   |    7.4     3.5     4.3     2.6    -5.6  |     .2      .3     -.7    -1.6     -.1
                                                   |                                         |
  Energy                                           |    1.4    -2.5     1.2     4.5    -3.2  |    -.2      .6      .1      .4    -1.6
     Consumer products                             |    1.6    -3.4     2.3     8.6    -7.4  |    -.2      .6     -.3     1.9    -1.9
     Commercial products                           |    5.0     -.1      .7     7.3     2.3  |     .1      .4     -.3      .1      .0
     Oil and gas well drilling                     |    8.7   -26.3     5.7    19.1     4.8  |     .0      .1      .1      .2     -.2
     Converted fuel                                |    1.2     -.2     2.7     5.6   -10.0  |     .8      .0     -.1      .4      .4
     Primary materials                             |    -.5     -.5     -.6     -.2      .0  |    -.4      .5      .1      .0    -2.5
                                                   |                                         |
  Non-energy                                       |    8.4     4.3     4.8     2.3    -6.0  |     .3      .3     -.8    -1.9      .1
                                                   |                                         |
     Selected high-technology industries           |   40.2    35.8    34.0    39.5   -20.9  |    4.5    -1.4    -6.6   -15.8    -5.4
        Computers and office equipment   357       |   24.5    40.5    33.0    33.4   -11.4  |    3.0   -13.5   -21.3    -8.7    -1.1
        Communications equipment   366             |   27.6     6.5    21.1    25.4   -24.1  |    3.0    -2.5     7.7   -10.2    -9.2
        Semiconductors and related                 |                                         |
              electronic components   3672-9       |   55.0    50.5    41.1    48.6   -23.5  |    6.1     4.9    -6.7   -24.8    -4.8
                                                   |                                         |
     Excluding selected high-technology            |                                         |
           industries                              |    5.3     1.4     2.0    -1.4    -4.4  |    -.3      .1     -.3     -.7      .7
                                                   |                                         |
        Motor vehicles and parts         371       |   14.3     6.7     7.5    -8.0     3.0  |   -1.7     3.5     1.6    -1.6      .7
           Motor vehicles   3711,3                 |   14.2     9.0     6.3   -11.4     6.3  |     .0     2.1     4.2      .9    -1.1
           Motor vehicle parts   3714              |   14.1     3.7     9.2    -1.2      .1  |   -4.0     5.4    -1.6    -4.5     2.2
                                                   |                                         |
        Excluding motor vehicles and parts         |    4.6     1.0     1.5     -.8    -5.0  |    -.2     -.1     -.5     -.6      .7
           Consumer goods                          |    3.2     -.5     1.9      .5    -1.2  |    -.1     -.2     -.6      .1      .6
           Business equipment                      |    9.0     4.1    -3.1     1.9   -10.8  |    -.3      .9     -.8    -3.4      .9
           Business supplies                       |    4.0     1.7     1.6     -.5    -9.6  |    -.8     -.7    -1.0     -.4     1.0
           Materials                               |    5.2     -.8     3.3    -2.7    -6.1  |    -.2      .2      .0     -.4      .7
                                                   |                                         |
  Measures excluding selected high-technology      |                                         |
        industries                                 |                                         |
  Total industry                                   |    4.7      .9     1.8     -.5    -4.2  |    -.3      .2     -.3     -.5      .4
     Manufacturing                                 |    5.2     1.4     1.9    -1.3    -4.5  |    -.2      .2     -.4     -.7      .7
        Durable                                    |    6.5     3.3     1.8    -1.8    -5.2  |    -.3      .7     -.4    -1.4      .5
           Industrial machinery   351-6,8,9        |    3.4      .5     -.4      .1   -11.9  |    -.2     -.1    -1.6    -4.8     2.2
           Electrical machinery   361-5,9,71       |    5.2      .9     3.9    -1.2    -8.3  |    -.2     1.2    -2.6    -1.2    -1.4
                                                   |                                         |
  Measures excluding motor vehicles and parts      |                                         |
  Total industry                                   |    7.0     3.3     4.1     3.4    -6.1  |     .2      .1     -.9    -1.5     -.2
     Manufacturing                                 |    7.9     4.2     4.5     3.2    -6.8  |     .4      .1    -1.0    -1.8      .0
        Durable                                    |   11.6     8.6     6.8     6.8    -9.6  |     .7      .0    -1.8    -3.7     -.8
                                                   |                                         |
  Primary processing                               |   11.0     5.7     8.0     3.7    -7.7  |     .5     1.3     -.9    -1.9     -.1
  Advanced processing                              |    6.6     3.5     2.8     1.4    -5.1  |     .2     -.4     -.9    -1.9      .3
 -------------------------------------------------------------------------------------------------------------------------------------
 <1> Rates of change are calculated as the percent change in the seasonally adjusted index from the fourth quarter of the
     previous year to the fourth quarter of the year specified in the column heading. For 2001, the rates of change are
     calculated from the fourth quarter of 2000 to the third quarter of 2001 and annualized.
 Note- Primary processing manufacturing includes textile mill products, paper and products, industrial chemicals,
     synthetic materials, and fertilizers, petroleum products, rubber and plastics products, lumber and products,
     primary metals, fabricated metals, stone, clay, and glass products, semiconductors and related electronic components,
     and motor vehicle parts.
     Advanced processing manufacturing includes foods, tobacco products, apparel products, printing and publishing,
     chemical products and other agricultural chemicals, leather and products, furniture and fixtures, industrial and
     commercial machinery and computer equipment, electrical machinery except semiconductors and related electronic
     components, transportation equipment except motor vehicle parts, instruments, and miscellaneous manufactures.



1Table 7
 REVISED AND EARLIER CAPACITY UTILIZATION RATES, BY INDUSTRY GROUPS

   Percent of capacity, seasonally adjusted


 --------------------------------------------------------------------------------------------------------------------------------
                                                   |                                                 |     Difference between
                                                   |                  Revised rate                   | revised and earlier rates
                                                   |                                                 |    (percentage points)
                                                   |   1967-   1988-   1990-                         |
 Item                                              |    2000    1989    1991    1999    2000    2001 |     1999     2000     2001
                                                   |    Ave.    High    Low       Q4      Q4      Q3 |       Q4       Q4       Q3
 --------------------------------------------------------------------------------------------------------------------------------
  Total industry                                   |   82.1    85.4    78.1    81.8    80.7    76.2  |      .2      -.6      -.2
                                                   |                                                 |
  Manufacturing                                    |   81.1    85.7    76.6    81.0    79.1    74.4  |      .1     -1.2      -.5
                                                   |                                                 |
     Durable                                       |   79.6    84.6    73.1    81.2    78.6    72.0  |      .2     -2.0     -1.1
        Lumber and products   24                   |   82.6    93.6    75.5    84.7    77.3    77.3  |     1.4      1.1       .2
        Furniture and fixtures   25                |   81.4    86.6    72.5    80.5    78.7    74.0  |     1.7     -1.4      -.3
        Stone, clay, and glass products   32       |   78.9    83.5    69.7    85.2    82.3    79.9  |     -.1     -1.7     -1.0
        Primary metals   33                        |   81.7    92.7    73.7    88.5    83.6    78.2  |     -.1       .6      -.7
        Fabricated metals   34                     |   78.0    82.0    71.9    76.7    76.3    72.3  |     -.2       .6      1.9
        Industrial machinery and equipment   35    |   81.3    85.4    72.3    79.1    78.4    69.8  |     -.7     -4.1     -1.7
        Electrical machinery   36                  |   81.4    84.0    75.0    85.0    82.8    64.9  |     1.6     -4.3     -3.1
        Motor vehicles and parts   371             |   77.1    89.1    55.9    84.8    76.3    76.5  |     1.9       .3       .0
        Aerospace and miscellaneous                |                                                 |
              transportation equipment   372,6-9   |   75.2    87.3    79.2    74.7    74.0    70.7  |     1.9      1.2      1.1
        Instruments   38                           |   81.3    81.4    77.2    76.4    76.6    74.1  |    -4.0     -3.9     -3.9
        Miscellaneous   39                         |   76.0    79.0    71.7    79.7    78.4    74.4  |    -1.9     -2.2     -2.1
                                                   |                                                 |
     Nondurable                                    |   83.2    87.3    80.7    80.7    79.8    77.6  |     -.3       .0       .7
        Food and tobacco products   20,21          |   83.2    85.9    81.6    80.2    80.4    79.8  |     -.3      -.9      -.5
        Textile mill products   22                 |   85.6    90.4    77.7    84.6    77.4    73.6  |     2.2       .3      2.5
        Apparel products   23                      |   80.9    85.1    75.5    77.3    72.2    68.5  |     5.6      2.8      2.9
        Paper and products   26                    |   88.6    93.5    85.0    84.9    81.5    77.7  |    -1.8     -1.8     -1.2
        Printing and publishing   27               |   85.2    91.7    79.6    77.8    78.5    73.9  |    -2.9     -3.5     -2.0
        Chemicals and products   28                |   79.3    86.2    79.3    77.6    77.7    76.5  |     -.8      2.1      3.0
        Petroleum products   29                    |   87.3    88.5    85.1    93.0    94.5    92.5  |     -.1       .2      -.2
        Rubber and plastics products   30          |   84.7    89.6    77.4    87.1    82.0    78.4  |     1.8      1.1      1.1
                                                   |                                                 |
  Mining                                           |   87.6    88.0    87.0    87.1    90.3    90.8  |     2.5      3.8      1.3
  Utilities                                        |   87.7    92.6    83.4    90.1    93.6    86.1  |      .9      1.6       .2
                                                   |                                                 |
  Selected high-technology industries              |   80.5    81.9    72.4    83.2    81.2    61.2  |     2.4     -3.9     -2.4
     Computers and office equipment   357          |   81.1    86.9    66.9    77.4    75.0    63.4  |      .9     -3.2      -.6
     Communications equipment   366                |   80.5    84.8    73.4    81.6    81.6    62.7  |     6.4     -5.6     -4.1
     Semiconductors and related                    |                                                 |
           electronic components   3672-9          |   80.0    81.1    75.6    86.7    83.6    59.4  |      .7     -4.3     -1.7
                                                   |                                                 |
  Measures excluding selected high-technology      |                                                 |
        industries                                 |                                                 |
  Total industry                                   |   82.2    85.7    78.4    81.7    80.7    77.8  |      .0       .0       .3
     Manufacturing                                 |   81.1    86.1    76.8    80.7    78.9    76.1  |     -.2      -.6       .1
        Industrial machinery   351-6,8,9           |   81.2    85.5    74.0    79.5    79.6    72.4  |    -1.3     -4.6     -1.7
        Electrical machinery   361-5,9,71          |   83.4    87.5    74.3    85.1    81.8    76.0  |     -.3     -1.0     -2.4
                                                   |                                                 |
  Primary processing                               |   82.2    88.3    76.7    84.2    81.1    74.6  |     -.4     -1.7      -.7
  Advanced processing                              |   80.5    84.2    76.6    79.0    77.9    74.3  |     -.3     -1.7      -.9
 --------------------------------------------------------------------------------------------------------------------------------
 Note- Primary processing manufacturing includes textile mill products, paper and products, industrial chemicals,
     synthetic materials, and fertilizers, petroleum products, rubber and plastics products, lumber and products,
     primary metals, fabricated metals, stone, clay, and glass products, semiconductors and related electronic components,
     and motor vehicle parts.
     Advanced processing manufacturing includes foods, tobacco products, apparel products, printing and publishing,
     chemical products and other agricultural chemicals, leather and products, furniture and fixtures, industrial and
     commercial machinery and computer equipment, electrical machinery except semiconductors and related electronic
     components, transportation equipment except motor vehicle parts, instruments, and miscellaneous manufactures.



1Table 8
 RATES OF CHANGE IN CAPACITY, BY INDUSTRY GROUPS, 1997-2001 <1>


 ---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                   |                                                   |                Difference between
                                                   |                  Revised change                   |            revised and earlier changes
                                                   |                     (percent)                     |                (percentage points)
 Item                                              |      1997      1998      1999      2000      2001 |      1997      1998      1999      2000      2001
 ---------------------------------------------------------------------------------------------------------------------------------------------------------
  Total industry                                   |      6.4       6.4       3.9       4.0       1.7  |       .4       -.1       -.7       -.5       -.7
                                                   |                                                   |
  Manufacturing                                    |      7.1       7.2       4.5       4.7       1.6  |       .5       -.1       -.6       -.3      -1.0
                                                   |                                                   |
     Durable                                       |     10.2      10.4       6.6       8.1       3.0  |       .9        .2      -1.7       -.7      -1.9
     Nondurable                                    |      3.3       3.2       1.7        .4       -.2  |      -.1       -.9        .4       -.5       -.1
                                                   |                                                   |
  Mining                                           |      1.3       -.6      -2.4      -1.9        .4  |      -.6       -.5       -.9      -1.1       1.8
  Utilities                                        |       .6        .1       2.4       2.9       5.2  |      -.4      -1.0        .1       -.5       1.1
                                                   |                                                   |
                                                   |                                                   |
  Selected high-technology industries              |     44.4      36.6      28.6      42.9      12.9  |      4.1      -2.8      -9.2      -4.7      -8.6
  Manufacturing ex. selected                       |                                                   |
        high-technology industries                 |      3.6       4.4       2.0       1.0        .3  |       .0       -.1        .0       -.3       -.3
                                                   |                                                   |
  Primary processing                               |      9.4       9.8       5.0       7.8       2.7  |      1.0        .4        .1       -.3      -1.4
  Advanced processing                              |      5.6       5.5       4.2       2.9        .9  |       .7       -.2      -1.0       -.1       -.9
 ---------------------------------------------------------------------------------------------------------------------------------------------------------
 <1> Rates of change are calculated as the percent change in the seasonally adjusted index from the fourth quarter of the
     previous year to the fourth quarter of the year specified in the column heading.
 Note- Primary processing manufacturing includes textile mill products, paper and products, industrial chemicals,
     synthetic materials, and fertilizers, petroleum products, rubber and plastics products, lumber and products,
     primary metals, fabricated metals, stone, clay, and glass products, semiconductors and related electronic components,
     and motor vehicle parts.
     Advanced processing manufacturing includes foods, tobacco products, apparel products, printing and publishing,
     chemical products and other agricultural chemicals, leather and products, furniture and fixtures, industrial and
     commercial machinery and computer equipment, electrical machinery except semiconductors and related electronic
     components, transportation equipment except motor vehicle parts, instruments, and miscellaneous manufactures.



1Table 9
 ANNUAL PROPORTIONS IN INDUSTRIAL PRODUCTION, BY INDUSTRY GROUPS


 ---------------------------------------------------------------------------------------------------------------------------------------------------
 Item                                              |       1993        1994        1995        1996        1997        1998        1999        2000
 ---------------------------------------------------------------------------------------------------------------------------------------------------
                                                   |
  Total IP                                         |      100.0       100.0       100.0       100.0       100.0       100.0       100.0       100.0
                                                   |
  MARKET GROUPS                                    |
  Products                                         |       61.1        60.2        59.5        59.9        60.6        61.5        60.8        59.9
     Consumer goods                                |       29.0        28.6        28.3        28.4        28.3        28.7        28.6        28.4
        Durable                                    |        6.0         6.2         6.1         6.3         6.3         6.3         6.7         6.5
           Automotive products                     |        2.6         2.7         2.7         2.8         2.9         2.9         3.3         3.4
           Home electronics                        |         .4          .5          .5          .5          .5          .5          .5          .4
           Appliances, furniture, carpeting        |        1.4         1.4         1.3         1.3         1.3         1.4         1.3         1.3
           Miscellaneous goods                     |        1.6         1.6         1.6         1.6         1.6         1.6         1.5         1.5
                                                   |
        Nondurable                                 |       23.0        22.4        22.2        22.1        22.0        22.3        21.9        21.8
           Non-energy                              |       19.8        19.3        19.1        19.0        19.2        19.5        18.8        18.6
              Foods and tobacco                    |        9.9         9.7         9.7         9.6         9.7        10.1        10.0        10.1
              Clothing                             |        2.3         2.3         2.1         2.0         1.9         1.7         1.5         1.4
              Chemical products                    |        4.6         4.5         4.5         4.5         4.6         4.7         4.5         4.3
              Paper products                       |        3.0         2.8         2.8         2.8         3.0         3.0         2.8         2.8
           Energy                                  |        3.2         3.1         3.1         3.1         2.9         2.8         3.1         3.2
                                                   |
     Business equipment                            |       13.3        13.3        13.4        13.7        14.3        14.7        14.2        13.7
        Transit                                    |        2.5         2.4         2.3         2.3         2.6         3.1         3.2         3.1
        Information processing                     |        5.4         5.2         5.2         5.4         5.6         5.6         5.5         5.5
        Industrial and other                       |        5.5         5.6         5.9         6.0         6.0         6.0         5.4         5.2
                                                   |
     Defense and space equipment                   |        3.1         2.7         2.5         2.3         2.1         2.2         2.1         1.9
                                                   |
     Construction supplies                         |        5.5         5.7         5.6         5.7         5.9         6.2         6.3         6.4
     Business supplies                             |        9.2         9.0         8.9         8.9         8.9         8.9         8.8         8.7
                                                   |
  Materials                                        |       38.9        39.8        40.5        40.1        39.4        38.5        39.2        40.1
     Durable                                       |       21.3        22.2        22.8        23.0        23.2        23.1        23.2        23.5
        Consumer parts                             |        4.3         4.6         4.5         4.5         4.5         4.6         4.8         4.7
        Equipment parts                            |        7.5         7.6         8.2         8.4         8.4         8.5         8.5         9.0
        Other                                      |        9.5         9.9        10.1        10.2        10.2        10.1         9.9         9.7
                                                   |
     Nondurable                                    |        8.7         9.4         9.3         8.5         8.6         8.3         8.0         7.9
        Textile                                    |        1.1         1.1         1.0         1.0         1.0          .9          .9          .8
        Paper                                      |        1.7         2.0         2.1         1.7         1.7         1.7         1.7         1.6
        Chemical                                   |        3.9         4.2         4.1         3.9         4.0         3.8         3.6         3.7
                                                   |
     Energy                                        |        8.9         8.3         8.4         8.6         7.7         7.1         8.0         8.8
                                                   |
                                                   |
  INDUSTRY GROUPS                                  |
  Manufacturing                                    |       85.7        86.5        86.6        86.5        87.6        88.5        87.7        86.5
     Durable                                       |       45.5        46.2        46.6        47.3        48.1        48.9        48.8        48.3
        Lumber and products   24                   |        2.2         2.2         2.1         2.1         2.1         2.1         2.3         2.2
        Furniture and fixtures   25                |        1.4         1.3         1.4         1.4         1.5         1.6         1.6         1.5
        Stone, clay, and glass products   32       |        2.1         2.2         2.2         2.3         2.3         2.4         2.5         2.5
        Primary metals   33                        |        3.3         3.5         3.5         3.5         3.6         3.4         3.3         3.2
        Fabricated metals   34                     |        5.1         5.2         5.3         5.4         5.6         5.8         5.7         5.8
        Industrial machinery and equipment   35    |        8.1         8.4         8.8         9.0         9.1         9.0         8.4         8.2
        Electrical machinery   36                  |        7.4         7.8         8.3         8.5         8.7         8.7         8.7         9.1
        Motor vehicles and parts   371             |        5.0         5.5         5.4         5.4         5.6         5.6         6.4         6.5
        Aerospace and miscellaneous                |
              transportation equipment   372-6,9   |        4.4         3.8         3.5         3.4         3.6         4.3         4.1         3.9
        Instruments   38                           |        5.3         4.9         4.8         4.8         4.7         4.7         4.6         4.4
        Miscellaneous   39                         |        1.3         1.3         1.3         1.3         1.3         1.3         1.2         1.2
                                                   |
     Nondurable                                    |       40.2        40.3        40.0        39.2        39.6        39.6        38.9        38.2
        Food and tobacco products   20,21          |       10.7        10.5        10.5        10.3        10.3        10.8        10.6        10.7
        Textile mill products   22                 |        1.8         1.8         1.7         1.6         1.5         1.5         1.4         1.3
        Apparel products   23                      |        2.1         2.1         2.0         1.9         1.9         1.7         1.7         1.5
        Paper and products   26                    |        3.4         3.8         3.9         3.5         3.5         3.5         3.4         3.3
        Printing and publishing   27               |        6.8         6.6         6.6         6.6         6.9         6.8         6.5         6.4
        Chemicals and products   28                |        9.9        10.0         9.9         9.7         9.9         9.7         9.3         9.2
        Petroleum products   29                    |        1.5         1.5         1.5         1.7         1.6         1.6         1.9         1.9
        Rubber and plastics products   30          |        3.6         3.8         3.7         3.7         3.8         3.9         3.9         3.8
                                                   |
  Mining            10-14                          |        6.3         5.9         5.9         6.2         5.6         5.0         5.8         6.8
  Utilities            491,2,3pt                   |        7.9         7.6         7.5         7.3         6.8         6.5         6.4         6.7
     Electric                                      |        6.3         6.0         5.9         5.8         5.5         5.3         5.2         5.2
     Gas                                           |        1.6         1.6         1.6         1.5         1.3         1.1         1.3         1.5
 ---------------------------------------------------------------------------------------------------------------------------------------------------
 Note- The IP proportion data are estimates of the industries' relative contributions to the overall IP change between the reference
     year and the following year.  For example, a 1 percent increase in durable goods manufacturing between 2000 and 2001 would
     account for a 0.483 percent increase in total IP.



1
 Explanatory Note


 The Industrial Production and Capacity Utilization statistical release,
 which is published around the middle of the month, reports measures of
 output, capacity, and capacity utilization in manufacturing, mining, and
 the electric and gas utilities industries.  The release also includes monthly
 indexes on the use of electric power in manufacturing and mining. More
 detailed descriptions of industrial production, capacity utilization, and
 electric power are available at www.federalreserve.gov/releases/G17 at
 the Board's World Wide Web site. In addition, files containing data shown
 in the release, more detailed series that were published in the G.17 prior to
 December 2000, and historical data are available at the Board's Web site.
 Instructions for searching for and downloading specific series are provided
 as well.  For paid access to the data files through the Department of
 Commerce's Economic Bulletin Board or World Wide Web site, please
 call STAT-USA at 1-800-STAT-USA or 202-452-1986.  Diskettes
 containing historical data and the data published in this release also are
 available from the Board of Governors of the Federal Reserve System,
 Publications Services, 202-452-3245.

 Industrial Production

 Coverage. The industrial production (IP) index measures the real output
 of the manufacturing, mining, and electric and gas utilities industries; the
 reference period for the index is 1992. For the period since 1997, the total
 IP index has been constructed from 276 individual series based on the
 1987 Standard Industrial Classification (SIC) codes. These individual
 series are classified in two ways: (1) market groups, and (2) industry
 groups.  Market groups consist of products and materials.  Total products
 are the aggregate of final products, such as consumer goods and
 equipment, and intermediate products (which are inputs to nonindustrial
 sectors).  Materials are inputs in the manufacture of  products.  Major
 industry groups include two-digit SIC industries and aggregates of these
 industries-for example, durable and nondurable manufacturing, mining,
 and utilities.  A complete description of the market and industry structures,
 including details regarding series classification, relative importance
 weights, and data sources, is available on the Board's web site
 (www.federalreserve.gov/releases/G17/About.html) .  Changes in
 output for the market and industry groups are summarized in table 1 and
 the levels of output (in index form) are shown in table 4.  Special
 aggregates, that highlight the relative importance and contributions of
 several key industries, such as high-technology and motor vehicles, are
 summarized in tables 2 and 5.  For a detailed description of the contents of
 the statistical tables, see below.

 Source data. On a monthly basis, the individual indexes of industrial
 production are constructed from two main types of source data: (1) output
 measured in physical units and (2) data on inputs to the production
 process, from which output is inferred.  Data on physical products, such as
 tons of steel or barrels of oil, are obtained from private trade associations
 and from government agencies; data of this type are used to estimate
 monthly IP wherever possible and appropriate.  Production indexes for a
 few industries are derived by dividing estimated nominal output
 (calculated using unit production or sales and unit values) by a
 corresponding Fisher price index; the most notable of these fall within the
 high-technology grouping and include computers and semiconductors.
 When suitable data on physical product are not available, estimates of
 output are based on either production-worker hours or electric power use
 by industry.  Data on hours worked by production workers are collected in
 the monthly establishment survey conducted by the Bureau of Labor
 Statistics. The data on electric power use are described below. The factors
 used to convert inputs into estimates of production are based on historical
 relationships between the inputs and the comprehensive annual data used
 to benchmark the IP indexes; these factors also may be influenced by
 technological or cyclical developments.  The annual data used in
 benchmarking the individual IP indexes are constructed from a variety of
 source data, such as the quinquennial Censuses of Manufactures and
 Mineral Industries and the Annual Survey of Manufactures, prepared by
 the Bureau of the Census; the Minerals Yearbook, prepared by the United
 States Geological Survey of the Department of the Interior; and
 publications of the Department of Energy.

 Aggregation Methodology and Weights.  The aggregation method for
 the IP index is a version of the Fisher-ideal index formula.  (For a detailed
 discussion of the aggregation method, see Federal Reserve Bulletin
 February 1997 and March 2001.)  In the IP index, series that measure the
 output of an individual industry are combined using weights derived from
 their proportion in the total value-added output of all industries.   The IP
 index, which extends back to 1919, is built as a chain-type index since
 1977.  Between 1977 and 1992, the weights for months from January to
 June were drawn from the year containing the month being estimated and
 the preceding year; for months from July to December, the weights are
 drawn from the current and following year.  Since mid-1992, the weights
 change monthly, eliminating distortions in the contributions of several
 high-technology industries-sectors where weights shift noticeably
 year-to-year.  Thus, the current formula for the growth in monthly IP (or
 any of the sub-aggregates) since mid 1992 is the geometric mean of the
 change in output (I), and, as can be seen below, is computed using the unit
 value added estimate for the current month (pm) and the estimate for
 previous month:



 The IP proportions (typically shown in the first column of the relevant
 tables in the G.17 release) are estimates of the industries' relative
 contributions to overall growth in the following year.  For example, the
 relative importance weight of the motor vehicles and parts industry is
 about 5 percent.  If output in this industry increased 10 percent in a month,
 then this gain would boost growth in total IP by  percentage point (0.05
 x 10% = 0.5%).  To assist users with calculations, the Federal Reserve's
 web site provides supplemental monthly statistics that represent the exact
 proportionate contribution of a monthly change in a component index to
 the monthly change in the total index (www.federalreserve.gov/
 releases/G17/ipdisk/ipweights.sa).

 Timing. The first estimate of output for a month is published around the
 15th of the following month. The estimate is preliminary (denoted by the
 superscript "p" in tables) and subject to revision in each of the subsequent
 three months as new source data become available. (Revised estimates are
 denoted by the superscript "r" in tables.)  For the first estimate of output
 for a given month, about 48 percent of the source data (in value-added
 terms) are available; the fraction of available source data increases to about
 85 percent for estimates in the second month that the estimate is published,
 96 percent in the third month, and 97 percent in the fourth month.  Data
 availability by data type is summarized in the table below:

 Proportion (in percent) of industrial production covered by data
 available in successive monthly estimates, 1999.
                                                                                                                                                                
                                 Month of estimate              
 Type of data                         1st     2nd     3rd     4th
 Physical product                    19\1      33    46\2      47
 Production-worker hours             28\3      28      28      28
 Electric power use                    0       22      22      22
 Federal Reserve estimates\4          53       17      3      3\5
 Total industrial production          100     100     100     100


 1.Includes provisional series totaling nearly 13 percent of IP that are
 derived from weekly data and for which the actual data may lag several
 months.

 2.Includes quarterly data totaling 6 percent of IP that, on average, are
 received for the third estimate of industrial production.  Specifically, data
 are available for the second estimate of the last month of a quarter, the
 third estimate of the second month of a quarter, and the fourth estimate of
 the first month of a quarter.

 3.This figure refers only to those individual series that both initially and
 ultimately are based on the hours data.

 4.Estimates for series not yet covered by data for physical product or
 electric power use.

 5.Includes monthly and quarterly physical product data totaling 3
 percent of IP that typically are available too late for inclusion in the
 current index but are included at the time of an annual revision.

 Until the source data for a particular series become available for a given
 month, estimates for the missing observations are based on other available
 data, such as labor input, recent trends in output and orders, and anecdotal
 reports from industry sources.  After the fourth month that an estimate is
 published, indexes are not revised further until the time of an annual
 revision or a benchmark revision. These historical revisions are typically
 published in the late fall of each year; the most recent revision was
 published on December 5, 2000, and incorporated revised source data as
 well as data from the 1998 Annual Survey of Manufactures and the 1997
 Census of Manufactures.

 Seasonal adjustment. Individual series are seasonally adjusted using
 Census X-12 ARIMA. For series based on production-worker hours, the
 current seasonal factors were estimated with data through October 2000;
 for other series, the factors were estimated with data through at least June
 2000.  Series are pre-adjusted for the effects of holidays or the business
 cycle when appropriate.  For the data since 1977, all seasonally adjusted
 aggregate indexes are calculated by aggregating the seasonally adjusted
 indexes of the individual series.

 Reliability.  The average revision to the level of the total IP index, without
 regard to sign, between the first and the fourth estimates was 0.27 percent
 during the 1987-99 period.  The average revision to the percent change in
 total IP, without regard to sign, from the first to the fourth estimates was
 0.21 percentage point during the 1987-99 period.  In most cases (about 83
 percent), the direction of change in output indicated by the first estimate
 for a given month is the same as that shown by the fourth estimate.

 Rounding.  The published percent changes are calculated from unrounded
 indexes, and may not be the same as percent changes calculated from the
 rounded indexes shown in the release.

 Capacity Utilization

 Overview.  The Federal Reserve Board constructs estimates of capacity
 and capacity utilization for industries in manufacturing, mining, and
 electric and gas utilities.  For a given industry, the capacity utilization rate
 is equal to an output index (seasonally adjusted) divided by a capacity
 index.  The Federal Reserve Board's capacity indexes attempt to capture
 the concept of sustainable maximum output-the greatest level of output a
 plant can maintain within the framework of a realistic work schedule, after
 factoring in normal downtime and assuming sufficient availability of
 inputs to operate the capital in place.

 Coverage.  Capacity indexes are constructed for 76 detailed industries (56
 in manufacturing, 18 in mining, and 2 in utilities), which mostly
 correspond to industries at the two- and three-digit SIC level.  Estimates of
 capacity and utilization are available for a variety of groups, including
 primary and advanced processing industries within manufacturing,
 durable and nondurable manufacturing, total manufacturing, mining,
 utilities, and total industry.  Also, special aggregates are available, such as
 high-tech industries and manufacturing excluding high-tech industries.
 Component industries of the primary- and advanced-processing groups
 within manufacturing are listed in the note on table 2 of the release.

 Source Data.  The monthly rates of capacity utilization are designed to be
 consistent with both the monthly data on production and the periodically
 available data on capacity and utilization.  Because there is no direct
 monthly information on overall industrial capacity or utilization rates, the
 Federal Reserve first estimates annual capacity indexes from the source
 data.  Capacity data reported in physical units from government sources
 (primarily from the U.S. Geological Survey and the Department of
 Energy's Energy Information Administration) and trade sources are
 available for portions of several industries in manufacturing (e.g., paper,
 industrial chemicals, petroleum refining, motor vehicles), as well as for
 electric utilities and mining; these industries represent about 15 percent of
 total industrial capacity.  When physical product data are unavailable for
 manufacturing industries, capacity indexes are based on responses to the
 Bureau of the Census's Survey of Plant Capacity (SPC); these industries
 account for a bit more than 80 percent of total industry capacity.  In the
 absence of utilization data for a few mining and petroleum series, capacity
 is based on trends through peaks in production (roughly 4 percent of total
 industry capacity).  A detailed description of the methodology used to
 construct the capacity indexes is available on the Board's web site
 (www.federalreserve.gov/releases/G17/cap_notes.html).

 Aggregation Methodology.  Monthly capacity aggregates are calculated
 in three steps: (1) utilization aggregates are calculated on an annual basis
 through the most recent full year as capacity-weighted aggregates of
 individual utilization rates; (2) the annual aggregate capacity is derived
 from the corresponding production and utilization aggregates; (3) the
 monthly capacity aggregate is obtained by interpolating with a Fisher
 index of its constituent monthly capacity series.  Utilization rates for the
 individual series and aggregates are calculated by dividing the pertinent
 monthly production index by the related capacity index.

 Consistency.  A major aim is that the Federal Reserve utilization rates be
 consistent over time so that, for example, a rate of 85 percent means about
 the same degree of tightness that it meant in the past.  A major task for the
 Federal Reserve in developing reasonable and consistent time series of
 capacity and utilization is dealing with inconsistencies between the
 movements of the industrial production index and the survey-based
 utilization rates.  The McGraw-Hill/DRI Survey, now discontinued, was
 the primary source of manufacturing utilization rates for many years.  This
 was a survey of large companies that reported, on average, higher
 utilization rates than those reported by establishments covered by the SPC
 (currently the primary source of factory operating rates) for the fourteen
 years they overlapped.  Adjustments have been made to keep the industry
 utilization rates currently reported by the Federal Reserve roughly in line
 with rates formerly reported by McGraw-Hill.  As a consequence, the rates
 reported by the Federal Reserve tend to be higher than the rates reported in
 the SPC.

 Perspective.  Over the 1967-1999 period, the average total industry
 utilization rate is 82.0 percent; for manufacturing, the average factory
 operating rate has been 81.1 percent.  Industrial plants usually operate at
 capacity utilization rates that are well below 100 percent: none of the
 broad aggregates has ever reached 100 percent.  For total industry and
 total manufacturing, utilization rates have exceeded 90 percent only in
 wartime.  The highs and lows in capacity utilization shown in table 6 are
 specific to each series and do not all occur in the same month.

 Electric Power

 Coverage.  Electric power data for sales by utilities to industry users and
 for electric power produced by cogenerators (manufacturing and mining
 firms that produce electricity for their own use or to sell to a utility) are
 generally collected at the 3-digit SIC level for mining and manufacturing.
 Aggregates for 2-digit industries, as well as for total mining, durable,
 nondurable, total manufacturing and total industrial electric power use, are
 computed.  An aggregate showing total industry excluding nuclear
 nondefense is shown separately because the value-added proportion for
 the nondefense nuclear material series (part of SIC 2819) in total IP is
 considerably less than its share of total electric power use.  In addition,
 aggregates for utility sales to industrial users and industry generation are
 computed.  While only the major aggregates are shown in the release, data
 for the 2- and 3-digit industries are available on the Board's web site
 (www.federalreserve.gov/releases/G17).

 Source Data.  Electric power data are collected from a sample of utilities
 and cogenerators covering all twelve Federal Reserve Districts. The
 primary criterion for inclusion of a utility in the panel is whether the utility
 provides electric power to industrial customers.  A comparison of Federal
 Reserve kilowatt-hour aggregates to estimates from the 1998 Annual
 Survey of Manufactures (the most recent available) suggests the Federal
 Reserve data cover about 75 percent of the overall sales to manufacturing
 in that year.  The cogeneration panel covers about 50 percent of
 cogeneration used directly by manufacturers.  In order to provide more
 complete coverage and correct for any shortcomings of the survey, the
 series are benchmarked at  the 3-digit industry level to the latest available
 data from the Annual Survey of Manufactures and the Census of
 Manufactures.

 Methodology.  The data we receive from utilities and cogenerators are
 edited for anomalies and aggregated, using self weights, to the 3-digit SIC
 industry levels and above.  Where reports are late or unavailable for some
 reason, responses are estimated.

 Seasonal Adjustment.  Series are seasonal adjusted at the 3-digit SIC
 level, with seasonally-adjusted aggregates typically computed as sums of
 seasonally adjusted components.  The seasonal adjustment procedure
 (Census X-12 program) is used without trading-day adjustments because
 the reporting periods of the various utilities are not the same.  A leap year
 adjustment is also made where appropriate.

 References and Release Dates

 References.  The annual revision published in early December 2000 was
 described in an article published in the March 2001 Federal Reserve
 Bulletin. The annual revision published late 1999 is described more
 completely in the Federal Reserve Bulletin, vol.86 (March 2000).  A
 description of the aggregation methods for industrial production and
 capacity utilization is included in an article in the Federal Reserve
 Bulletin, vol.  83 (February 1997), pp. 67-92.  The Federal Reserve
 methodology for constructing industry-level measures of capital is detailed
 in "Capital Stock Estimates for Manufacturing Industries: Methods and
 Data" by Mike Mohr and Charles Gilbert (1996), which can be obtained at

 www.federalreserve.gov/releases/g17/capital_stock_doc-latest.pdf.

 Industrial Production-1986 Edition contains a more detailed description
 of the other methods used to compile the industrial production index, plus
 a history of its development, a glossary of terms, and a bibliography.  The
 major revisions to the IP indexes and capacity utilization since 1990 have
 been described in the Federal Reserve Bulletin (April 1990, June 1990,
 June 1993, March 1994, January 1995, January 1996, February 1997,
 February 1998, January 1999, and March 2000).

 Release Schedule

 At 9:15 a.m. on

 2001:  January 17, February 16, March 16, April 17, May 14, June 15,
 July 17, August 15, September 14, October 16, November 16, and
 December 14.

 2002:  January 16, February 15, March 15, April 16, May 15, June 14,
 July 16, August 15, September 17, October 17, November 15, and
 December 17.