INDUSTRIAL CAPACITY UTILIZATION- MINING, UTILITIES, AND MANUFACTURING

INDUSTRIAL CAPACITY UTILIZATION- MINING, UTILITIES, AND MANUFACTURING

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Industrial Capacity Utilization - - Mining, Utilities, and Manufacturing (annual data, seasonally adjusted)
Industrial Capacity Utilization - - Mining, Utilities, and Manufacturing (annual data, seasonally adjusted)

Industry capacity utilization rates measure the intensity of production given current available capital and indicate the potential for short-term expansion. Changes in industry capacity utilization rates describe the changes in the relation between supply and demand. Since capacity changes much slower, short-term changes in utilization reflect primarily changes in demand and the availability of labor. In a period of fast growth, capacity utilization would be high, while in a period of slowdown, it would be low. In the long-run, firms may adjust the amount of capital to respond capacity shortages or capacity under utilization.

Industrial Capacity Utilization Sep-02 Oct-02
Utilities (percentage) 88.19 86.59
Utilities percent change from previous month  2.13 -1.82
Mining (percentage) 84.76 83.90
Mining percent change from previous month -0.62 -1.02
Total rate (percentage) 75.84 75.17
Total rate percent change from previous month -0.29 -0.89
Manufacturing (percentage) 74.10 73.49
Manufacturing percent change from previous month -0.49 -0.82

NOTES: The three Major Industry Groups are manufacturing, utilities, and mining. There is more information at the Federal Reserve Board's web site: http://www.federalreserve.gov/Releases/G17/sdtab1.pdf.

Mining includes components of two-digit (Standard Industrial Classification) SIC group 10-14. Utilities includes parts of SIC group 49. Manufacturing is also available broken down between durable and nondurable. Durable manufacturing includes measurements from SIC groups 24, 25, and 32-39; nondurable manufacturing includes measurements from SIC groups 20-23 and 26-31. The North American Industrial System (NAICS) will be used starting with the 2002 revision. There is more information at the Federal Reserve Board's web site: http://www.federalreserve.gov/Releases/G17/sdtab1.pdf.

The Federal Reserve Board constructs estimates of capacity and capacity utilization for industries in manufacturing, mining, and energy. A capacity utilization rate is equal to a specified output index divided by the corresponding capacity index. The Federal Reserve Board's capacity indices are designed to quantify the concept of sustainable maximum output within a given industry. Sustainable maximum output is the highest level of output that a plant can maintain within the framework of a realistic work schedule, taking both into account normal downtime and assuming sufficient availability of inputs to operate the capital in place.

Data from July to October 2002 are preliminary.

SOURCE: Federal Reserve, "Industrial Production and Capacity Utilization" Statistical Release; Nov. 15, 2002; available at: http://www.federalreserve.gov/releases/g17/download.htm.