INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
[Annual Revision Notice Below]
Industrial production decreased 0.5 percent in April after having fallen 1.7 percent in March. Production
in manufacturing declined 0.3 percent in April and was 16.0 percent below its recent peak in December 2007.
The decreases in manufacturing in April remained broadly based across industries. Outside of
manufacturing, the output of mines fell 3.2 percent, as oil and gas field drilling and support activities
continued to drop. The output of utilities moved up 0.4 percent. At 97.1 percent of its 2002 average,
industrial output in April was 12.5 percent below its year-earlier level. The capacity utilization rate
for total industry fell further in April, to 69.1 percent, a low over the history of this series, which
begins in 1967.
|2008||2009||2008||2009|| Apr. '08 to
|Major market groups|
|Major industry groups|
|Manufacturing (see note below)||103.6||100.7||98.0||97.9||95.8||95.5||-2.2||-2.9||-2.7||-.1||-2.1||-.3||-14.5|
Percent of capacity
|2008||2009|| Apr. '08 to
|Manufacturing (see note below)||79.6||85.4||77.2||84.5||71.4||77.0||71.1||69.1||67.2||67.2||65.8||65.7||.2|
|Primary and semifinished||82.0||86.5||77.9||87.9||74.3||79.4||73.5||71.4||69.8||68.2||66.9||66.7||.0|
The output of most major market groups fell in April, although several categories recorded gains. The production of consumer goods was unchanged, as an increase in consumer durables was offset by a small decline in nondurables. The output of consumer durables increased 0.8 percent, with advances in automotive products; appliances, furniture, and carpeting; and miscellaneous goods. A decrease in the output of home electronics slightly offset those gains. The production of automotive products increased for a third consecutive month, as motor vehicle assemblies continued to move up from the exceptionally low levels earlier this year. The production of consumer nondurable goods moved down 0.2 percent in April; a decline of 0.5 percent in non-energy nondurables more than offset a gain in consumer energy products. All major categories of consumer non-energy nondurables fell; the index for consumer paper products posted a particularly large decrease, primarily because of declines in publishing.
The output of business equipment decreased 0.6 percent in April after monthly declines that averaged 2-3/4 percent in the first three months of the year. The declines in the production of both information processing equipment and industrial and other equipment moderated in April. The index for information processing equipment edged down 0.3 percent, and the index for industrial and other equipment moved down 0.6 percent. Elsewhere in business equipment, the output of transit equipment dropped 0.9 percent in April, primarily as a result of lower output of civilian aircraft.
The output of defense and space equipment was unchanged in April; production in this sector has remained little changed, on net, since the third quarter of 2007.
The output of construction supplies decreased 1.1 percent in April after a drop of 2.9 percent in March. Lower output of architectural and structural metals and stone mining and quarrying was the primary contributor to the decline in April in the production of construction supplies. A further reduction in the output of printing contributed to a decrease of 0.4 percent in the production of business supplies.
The output of materials to be further processed in the industrial sector decreased 0.7 percent in April; the index was 15 percent lower than its year-earlier level. Gains in textile, paper, and chemical production helped lift the output of nondurable materials, which rose 0.3 percent in April. Durable materials, in contrast, dropped 0.9 percent, as the output index for equipment parts and for other durable materials moved down. The production of energy materials fell 1.5 percent; a decrease in coal mining as well as a drop in oil and gas field services contributed to the weakness in this sector.
Manufacturing output declined 0.3 percent in April after falling 2.1 percent in March. The factory operating rate edged down 0.1 percentage point to 65.7 percent in April. The production index for durable goods decreased 0.3 percent, with declines in most categories partially offset by gains in the production of wood products, nonmetallic mineral products, motor vehicles and parts, and miscellaneous manufacturing. The production of nondurable goods edged down 0.1 percent. The production indexes for paper products and for petroleum and coal products advanced, but the indexes for printing and support and for apparel and leather fell substantially; output indexes for other nondurables industries were either unchanged or fell slightly. Production for the other manufacturing category, which consists of publishing and logging, fell 2.6 percent.
The output of utilities moved up 0.4 percent in April with gains in both electric and natural gas utilities. The operating rate for utilities moved up 0.2 percentage point to 80.7 percent, yet remained below its 1972-2008 average. The output index for mining dropped 3.2 percent in April, and its utilization rate fell to 82.5 percent, roughly 5 percentage points below its 1972-2008 average.
Capacity utilization rates in April at industries grouped by stage of process were as follows: At the crude stage, utilization dropped 0.9 percentage point to 78.5 percent, a rate 8.1 percentage points below its 1972-2008 average; at the primary and semifinished stages, utilization dropped 0.2 percentage point to 66.7 percent, a rate 15.3 percentage points below its long-run average; and at the finished stage, utilization slipped 0.2 percentage point to 67.9 percent, a rate 9.8 percentage points below its long-run average.
Revision of Industrial Production and Capacity Utilization
The Federal Reserve Board released its annual revision to the index of industrial production (IP) and the
related measures of capacity utilization on March 27, 2009. The revision affected the data from January
1972 through February 2009, with most of the changes for the period beginning in 2004 (the index levels for
IP, but not the rates of change, may have been changed before 1972 to maintain consistency with the revised
indexes for 1972 and after). The revised IP indexes incorporated data from selected editions of the U.S.
Census Bureau's 2007 Current Industrial Reports. Detailed data from the 2007 Economic Census, however,
were not available. Annual data from the U.S. Geological Survey regarding metallic and nonmetallic
minerals (except fuels) for 2007 were incorporated. Utilization rates were updated to incorporate data
from the U.S. Census Bureau's Quarterly Survey of Plant Capacity through 2008 as well as data from other
government and trade sources.
The published revision release and revised data are available on the Board's website at
www.federalreserve.gov/releases/G17. The revised data are also 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:
The Federal Reserve Board released its annual revision to the index of industrial production (IP) and the related measures of capacity utilization on March 27, 2009. The revision affected the data from January 1972 through February 2009, with most of the changes for the period beginning in 2004 (the index levels for IP, but not the rates of change, may have been changed before 1972 to maintain consistency with the revised indexes for 1972 and after). The revised IP indexes incorporated data from selected editions of the U.S. Census Bureau's 2007 Current Industrial Reports. Detailed data from the 2007 Economic Census, however, were not available. Annual data from the U.S. Geological Survey regarding metallic and nonmetallic minerals (except fuels) for 2007 were incorporated. Utilization rates were updated to incorporate data from the U.S. Census Bureau's Quarterly Survey of Plant Capacity through 2008 as well as data from other government and trade sources.
The published revision release and revised data are available on the Board's website at www.federalreserve.gov/releases/G17. The revised data are also 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).
|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|