INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
[Annual Revision Notice Below]

Industrial production edged up 0.1 percent in February following a gain of 0.9 percent in January. Production was likely held down somewhat by winter storms in the Northeast. Manufacturing decreased 0.2 percent in February, with mixed results among its major industries. The output of mines rose 2.0 percent, while the index for utilities rose 0.5 percent. At 101.0 percent of its 2002 average, industrial output in February was 1.7 percent above its year-earlier level. Capacity utilization for total industry moved up 0.2 percentage point to 72.7 percent, a rate 7.9 percentage points below its average from 1972 to 2009.

INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted

Industrial production	2002=100						Percent change
	2009				2010		2009				2010		Feb. '09 to Feb. '10
	Sept.[r]	Oct.[r]	Nov.[r]	Dec.[r]	Jan.[r]	Feb.[p]	Sept.[r]	Oct.[r]	Nov.[r]	Dec.[r]	Jan.[r]	Feb.[p]
Total index	98.7	98.9	99.5	100.0	100.9	101.0	.6	.2	.7	.5	.9	.1	1.7
Previous estimates	98.7	98.9	99.5	100.1	101.1		.6	.2	.6	.7	.9
Major market groups
Final Products	102.1	102.9	102.8	103.3	104.5	104.4	.8	.8	-.1	.4	1.1	-.1	1.7
Consumer goods	99.4	100.3	100.2	100.4	101.3	100.9	1.0	.8	-.1	.2	.9	-.4	2.2
Business equipment	108.8	109.6	109.4	110.6	112.3	112.8	-.1	.8	-.2	1.1	1.6	.4	-.7
Nonindustrial supplies	90.7	90.4	90.9	91.3	91.7	91.8	-.3	-.4	.6	.4	.5	.0	-1.5
Construction	81.7	80.2	81.4	79.6	80.5	80.8	-1.5	-1.7	1.4	-2.2	1.1	.3	-4.5
Materials	98.5	98.3	99.8	100.3	101.1	101.4	.7	-.2	1.5	.5	.8	.3	2.9
Major industry groups
Manufacturing (see note below)	97.7	97.6	98.6	98.4	99.3	99.1	.7	-.1	1.0	-.2	.9	-.2	1.5
Previous estimates	97.7	97.6	98.5	98.5	99.4		.6	-.1	1.0	-.1	1.0
Mining	96.8	96.8	98.9	98.5	99.5	101.5	-.2	.0	2.2	-.4	1.1	2.0	.2
Utilities	103.9	106.7	104.1	109.8	110.5	111.1	.5	2.6	-2.5	5.5	.6	.5	4.4

Market Groups

The production of consumer goods fell 0.4 percent in February. The index for consumer durables fell 2.3 percent, while the index for consumer nondurables edged up 0.1 percent. The decline in consumer durables was led by a drop of 4.4 percent in automotive products; other major components registered small declines. Despite the decrease in February, the output of consumer durables was up 9.2 percent from its year-earlier level as a result of an increase of 27.0 percent in automotive products; the indexes for the other major components of consumer durables were below their year-earlier levels. Among consumer nondurables in February, the output of non-energy goods fell 0.3 percent, with declines in all of the index's major components, while the output of energy goods increased 1.1 percent. The gain for consumer energy goods largely reflected a rebound in the production of refined petroleum products, which had decreased in the previous two months.

The output of business equipment rose 0.4 percent in February but remained 0.7 percent below its year-earlier level. Information processing equipment advanced 1.2 percent, about its average rate of increase over the previous three months. Industrial and other equipment moved up 0.3 percent. Transit equipment fell 0.9 percent, the fifth consecutive monthly decline for this index.

The production of defense and space equipment rose 1.3 percent in February and was 5.7 percent above its year-earlier level.

Within nonindustrial supplies, the output of construction supplies moved up 0.3 percent in February but was 4.5 percent below its year-earlier level. The production of business supplies edged down 0.1 percent after having risen for eight consecutive months.

The production of materials increased 0.3 percent in February. The index for non-energy materials edged down 0.1 percent; the output of durables was unchanged while nondurables fell 0.2 percent. Among the indexes for durable materials, consumer parts declined 0.8 percent, while equipment parts moved up 0.2 percent and other durable materials edged up 0.1 percent. Among major indexes for nondurable materials, textile materials advanced 1.5 percent, paper materials rose 0.4 percent, and chemical materials fell 0.7 percent. The index for energy materials rose 1.1 percent for its eighth consecutive monthly gain, with increases in coal mining and in support activities for oil and gas operations contributing significantly to the advance.

Industry Groups

In February, manufacturing output fell 0.2 percent after having risen 0.9 percent in January; the level of output in February was 1.5 percent above its year-earlier level. Capacity utilization for manufacturing edged down 0.1 percentage point in February to 69.0 percent, a rate 3.9 percentage points above its trough in June 2009 but 10.2 percentage points below its average for the period from 1972 to 2009.

The output of durable goods fell 0.3 percent in February, after having risen 1.7 percent in January, and was 2.1 percent above its year-earlier level. In February, motor vehicles and parts fell 4.4 percent and nonmetallic mineral products declined 1.6 percent; computer and electronic products rose 1.0 percent and electrical equipment, appliances, and components increased 0.9 percent. The indexes for primary metals, furniture and related products, and miscellaneous manufacturing fell slightly, while the indexes for wood products, fabricated metal products, machinery, and aerospace and miscellaneous transportation equipment rose slightly.

Nondurable manufacturing edged down 0.1 percent in February, after having risen 0.4 percent in January, and was 1.9 percent above its year-earlier level. The largest change in February was an increase of 2.2 percent for petroleum and coal products; results were mixed among other major components of nondurables.

In February, mining output gained 2.0 percent, and capacity utilization rose to 88.2 percent, a rate 0.7 percentage point above its average for the period from 1972 to 2009. The output of utilities rose 0.5 percent, as an increase in electric utilities more than offset a decline in natural gas utilities. Capacity utilization for utilities rose 0.3 percentage point to 83.1 percent, a rate 3.5 percentage points below its average for the period from 1972 to 2009.

Capacity utilization rates in February at industries grouped by stage of process were as follows: At the crude stage, utilization increased 0.9 percentage point to 86.2 percent, a rate 0.3 percentage point below its average for the period from 1972 to 2009; at the primary and semifinished stages, utilization rose 0.2 percentage point to 69.6 percent, a rate 12.0 percentage points below its long-run average; while at the finished stage, utilization edged down 0.2 percentage point to 70.8 percent, a rate 6.7 percentage points below its long-run average.

Revision of Industrial Production and Capacity Utilization

The Federal Reserve Board plans to issue in late June 2010 its annual revision to the index of industrial production (IP) and the related measures of capacity utilization. The revised IP indexes will incorporate detailed data from the 2007 Economic Census and the 2008 Annual Survey of Manufactures (ASM), both conducted by the U.S. Census Bureau. Data from selected editions of the Census Bureau's 2008 Current Industrial Reports will also be incorporated, as will annual data from the U.S. Geological Survey regarding metallic and nonmetallic minerals (except fuels) for 2008. The updating will include revisions to the monthly indicator (either product data or input data) and to seasonal factors for each industry. The annual revision will also introduce changes in the estimation methods for some series. Any changes to the methods for estimating the output of an industry will affect the index from 1972 to the present.

Capacity and capacity utilization will be revised to incorporate data from the Census Bureau's Quarterly Survey of Plant Capacity, which covers manufacturing, along with new data on capacity from the U.S. Geological Survey, the Department of Energy, and other organizations.

Once the revision is published, it will be available on the Board's website at www.federalreserve.gov/releases/G17. The revised data will also be available through the website of the Department of Commerce. Further information on the revision can be obtained from the Board's Industrial Output Section (telephone number 202-452-3197).

Note The statistics in this release cover output, capacity, and capacity utilization in the U.S. industrial sector, which is defined by the Federal Reserve to comprise manufacturing, mining, and electric and gas utilities. Mining is defined as all industries in sector 21 of the North American Industry Classification System (NAICS); electric and gas utilities are those in NAICS sectors 2211 and 2212. Manufacturing comprises NAICS manufacturing industries (sector 31-33) plus the logging industry and the newspaper, periodical, book, and directory publishing industries. Logging and publishing are classified elsewhere in NAICS (under agriculture and information respectively), but historically they were considered to be manufacturing and were included in the industrial sector under the Standard Industrial Classification (SIC) system. In December 2002 the Federal Reserve reclassified all its industrial output data from the SIC system to NAICS.

G.17 Release Tables:

Ascii	Screen reader	Summary: Industrial Production and Capacity Utilization
Chart		Chart 1: Industrial Production, Capacity, and Capacity Utilization
Chart		Chart 2: Industrial Production and Capacity Utilization
Chart		Chart 3: Industrial Production and Capacity Utilization, High Technology Industries
Ascii	Screen reader	Table 1: Industrial Production: Market and Industry Groups (percent change)
Ascii	Screen reader	Table 2: Industrial Production: Special Aggregates and Selected Detail (percent change)
Ascii	Screen reader	Table 3: Motor Vehicle Assemblies
Ascii	Screen reader	Table 4: Industrial Production Indexes: Market and Industry Group Summary
Ascii	Screen reader	Table 5: Industrial Production Indexes: Special Aggregates
Ascii	Screen reader	Table 6: Diffusion Indexes of Industrial Production
Ascii	Screen reader	Table 7: Capacity Utilization: Manufacturing, Mining, and Utilities
Ascii	Screen reader	Table 8: Industrial Capacity: Manufacturing, Mining, and Utilities (percent change)
Ascii	Screen reader	Table 9: Industrial Production: Gross Value of Products and Nonindustrial Supplies
Ascii	Screen reader	Table 10: Gross-Value-Weighted Industrial Production: Stage-of-Process Groups
Ascii	Screen reader	Table 11: Historical Statistics for IP, Capacity, and Utilization: Total Industry
Ascii	Screen reader	Table 12: Historical Statistics for IP, Capacity, and Utilization: Manufacturing
Ascii	Screen reader	Table 13: Historical Statistics for IP, Capacity, and Utilization: Total Industry excluding Selected High-Technology Industries
Ascii	Screen reader	Table 14: Historical Statistics for IP, Capacity, and Utilization: Manufacturing excluding Selected High-Technology Industries