Industrial capacity utilization rates measure the potential for short-term expansion and the intensity of current production given currently available capital. Short-term changes in utilization reflect changes in demand and the availability of labor. In the long-run, firms may adjust the amount of capital due to persistent changes in utilization rates.
|Industrial Capacity Utilization||Dec-01||Jan-02|
|Vehicles and parts (percentage)||77.08||76.05|
|Percent change from previous month||3.56||-1.33|
|Transportation equipment (percentage)||72.54||71.78|
|Percent change from previous month||1.19||-1.06|
|Aerospace and other industries (percentage)||65.53||65.14|
|Percent change from previous month||-2.79||-0.59|
NOTES: These data are for the industries with the following Standard Industrial Classification codes: Transportation equipment (37), Motor vehicles and parts (371), and Aerospace and other transportation equipment (372-6,9). The latter two consist of three-digit industrial classifications which are components of the two-digit industry classification.
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 October 2001 to January 2002 are preliminary.
SOURCE: Federal Reserve, "Industrial Production and Capacity Utilization" Statistical Release; Feb. 15, 2002; available at: http://www.federalreserve.gov/releases/g17/download.htm.