INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
Industrial production posted a 0.3 percent gain in August and was unchanged in July; the level of output in July was initially estimated to have risen by 0.4 percent. Manufacturing output inched up 0.1 percent in both July and August, a slower rate than in the first half of the year, when increases in manufacturing production averaged a little more than 1/2 percent per month. Mining output was unchanged in August, while production at utilities surged 4.0 percent. Capacity utilization for total industry rose 0.1 percentage point, to 82.3 percent, a level 0.3 percentage point above its 1967-99 average.
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted
| Index, 1992=100 | Percent change
| 2000 | 2000 | Aug. 99 to
Industrial Production | May June July Aug. | May June July Aug. | Aug. 00
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| | |
Total index | 144.7 145.2 145.2 145.7 | .8 .3 .0 .3 | 5.8
Previous estimates | 144.4 144.8 145.3 | .6 .2 .4 |
| | |
Major market groups: | | |
Products, total | 131.2 131.3 131.5 131.8 | .2 .1 .2 .2 | 3.2
Consumer goods | 118.8 119.0 118.6 119.2 | .2 .2 -.3 .5 | 1.3
Business equipment | 185.7 186.8 188.6 189.2 | .4 .6 1.0 .3 | 8.8
Construction supplies | 137.4 136.9 137.1 135.5 | -1.3 -.3 .1 -1.2 | 1.9
Materials | 168.1 169.3 168.9 169.9 | 1.9 .7 -.2 .6 | 9.9
| | |
Major industry groups: | | |
Manufacturing | 150.3 151.0 151.2 151.3 | .6 .5 .1 .1 | 6.2
Durable | 189.2 190.8 190.9 191.3 | 1.3 .8 .0 .2 | 9.7
Nondurable | 113.2 113.3 113.4 113.3 | -.3 .1 .1 -.1 | 1.6
Mining | 102.3 103.1 104.3 104.3 | 1.1 .8 1.1 .0 | 5.9
Utilities | 119.0 115.7 113.4 117.9 | 3.6 -2.8 -2.0 4.0 | .1
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| | Capacity
| Percent of Capacity | Growth
| Average 1982 1988-89 1999 | 2000 | Aug. 99 to
Capacity Utilization | 1967-99 Low High Aug. | May June July Aug. | Aug. 00
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| | |
Total industry | 82.0 71.1 85.4 80.7 | 82.4 82.4 82.2 82.3 | 3.7
Previous estimates | | 82.3 82.2 82.3 |
| | |
Manufacturing | 81.1 69.0 85.7 79.7 | 81.5 81.6 81.4 81.2 | 4.2
Advanced processing | 80.5 70.4 84.2 78.8 | 81.0 81.1 81.1 81.1 | 5.4
Primary processing | 82.4 66.2 88.9 82.8 | 83.3 83.3 82.7 82.2 | 1.5
Mining | 87.3 80.3 88.0 81.9 | 85.7 86.5 87.6 87.8 | -1.2
Utilities | 87.5 75.9 92.6 92.2 | 92.3 89.6 87.7 91.2 | 1.2
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Note: Estimates for August are preliminary. Estimates from May to July are revised.
Market Groups
After having declined 0.3 percent in July, the output of consumer goods rose 0.5 percent in August; production in the durable and nondurable goods sectors posted comparable gains. Within consumer durables, an increase in the output of automotive products, mainly motor vehicle assemblies and replacement tires, more than offset a decline in the production of other durable goods. Among other durable goods, a gain in the production of household appliances reversed a small portion of the sizable decline in July, but the output of carpeting and furniture and of miscellaneous durable goods fell. Within nondurable consumer goods, energy products jumped 3.7 percent in August, led by gains in residential sales of electricity and fuel oil. The output of non-energy products ticked up just 0.1 percent.
The production of business equipment rose 0.3 percent last month, with another large increase in the output of information processing and related equipment more than accounting for the gain. The production of industrial equipment moved down 0.5 percent. A 1.1 percent drop in transit equipment was due to declines in the output of commercial aircraft and of medium and heavy trucks. A large decrease in farm machinery and equipment production pushed down the "other equipment" index 4.8 percent. On balance, the level of output of business equipment was 8.8 percent higher than in August 1999, with gains in all major sectors except transit equipment. The production of defense and space equipment dropped 0.7 percent after two months of sizable increases.
After a downward-revised 0.1 percent rise in July, the production of construction supplies fell 1.2 percent in August and is now about 2-1/2 percent below its recent peak in April. The output of durable goods materials rose 0.5 percent, bringing production to a level 15.6 percent above the level in August 1999. The output of equipment parts, especially semiconductors, continued to post strong gains, but the output of consumer parts and of basic metals, such as steel, fell further. The output of nondurable goods materials dropped 0.2 percent, continuing the sluggish pattern that has been evident this year. In contrast, production of energy materials jumped 1.7 percent.
Industry Groups
Manufacturing output edged up 0.1 percent in August for the second consecutive month. Upward revisions to the manufacturing index for May and June were more than offset by a downward revision for July, which was largely attributable to lower production in steel, paper, and automotive parts. In August the level of output in the manufacturing sector was 6.2 percent higher than the level in August 1999. Excluding motor vehicles and parts, manufacturing production fell 0.1 percent. The output of durable goods industries moved up 0.2 percent, with the production of transportation equipment advancing 0.9 percent. Durable goods production was also lifted by further gains in computer and office equipment and semiconductors. The production of nondurable goods edged down, reversing the July increase; continued weakness in textile mill products, apparel, and rubber and plastics accounted for most of the decline. The overall factory operating rate dropped 0.2 percentage point, to 81.2 percent; capacity utilization at primary-processing industries fell 0.5 percentage point, while utilization at advanced-processing industries held steady at 81.1 percent.
The level of output in the mining sector was flat in August after three months of strong gains, which were mainly due to increases in the output of energy extraction industries. The utilization rate at mines ticked up, to 87.8 percent, a level 0.5 percentage point above its long-run average. Output at utilities, which had dropped 2.8 percent in June and 2.0 percent in July, jumped 4.0 percent; the operating rate at utilities increased to 91.2 percent, nearly 4 percent above its long-run average.
Revision of Industrial Production and Capacity Utilization
