Industrial Production and Capacity Utilization for January 1999.Released for publication February February: see month. , 17 Industrial production was unchanged in January January: see month. . Manufacturing output increased 0.1 percent, and utility output increased 0.2 percent, but production at mines decreased 1.8 percent. At 136.7 percent of its 1992 average, manufacturing production in January was 2.2 percent higher than it had been in January 1998. Overall capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. in January slipped 0.3 percentage point, to 80.5 percent, 1 1/2 percentage points below its 1967-98 average. MARKET GROUPS The output of durable consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and , which increased 0.3 percent, was lifted by an increase in automotive products. In contrast, the production of nondurable non·du·ra·ble adj. Not enduring; being in a state of constant consumption: nondurable items such as paper products. n. A consumable item: nondurables such as food. consumer goods excluding energy fell 0.3 percent and was down 2 1/4 percent from its level a year ago, a drop reflecting, in part, softness for clothing and paper products. The output of consumer energy products, which has been volatile recently, rose noticeably no·tice·a·ble adj. 1. Evident; observable: noticeable changes in temperature; a noticeable lack of friendliness. 2. Worthy of notice; significant. again in January. The production of business equipment edged down 0.1 percent. Declines in the output of industrial equipment and transit equipment more than offset a gain in information processing information processing: see data processing. information processing Acquisition, recording, organization, retrieval, display, and dissemination of information. Today the term usually refers to computer-based operations. equipment. Some of the decrease in transit equipment reflects further reductions in commercial aircraft production, which peaked last fall alter having climbed rapidly during the past few years. The output of construction supplies was flat, but at a high level, following strong gains in the fourth quarter. The production of business supplies increased 0.2 percent. The production of materials inched up 0.1 percent after having risen modestly in the preceding three months. The production of durable goods durable goods Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables. materials increased 0.5 percent mainly because of strength in the production of semiconductors and computer parts. However, the output of basic metals fell 0.6 percent, continuing the weakness that had begun in early 1998. In addition, the output of consumer durable parts, which rose rapidly late last year, has somewhat eased recently. The production of nondurable materials also edged down 0.2 percent, a move mainly reflecting ongoing weakness in textiles textiles, all fabrics made by weaving, felting, knitting, braiding, or netting, from the various textile fibers (see fiber). Types of Textiles and chemicals. INDUSTRY GROUPS Manufacturing output edged up 0.1 percent, with a small gain in the production of durable goods and a slight pullback Pullback A falling back of a price from its peak. This type of price movement might be seen as a brief reversal of the prevailing upward trend, signaling a slight pause in upward momentum. in the production of nondurable goods. Within durable goods industries, changes in production were mixed. Industries with large increases in production included lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to , furniture, and electrical machinery; industries showing cut-backs included primary metals, transportation equipment (notably civilian aircraft), and miscellaneous manufactures. The production of nondurable goods edged down 0.1 percent in January after having been flat in December December: see month. . Losses in tobacco, apparel, and leather products more than offset gains in petroleum and food products. Mining production fell again, pulled down by a sharp drop-off in coal production and the continued contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction in oil and gas extraction extraction /ex·trac·tion/ (eks-trak´shun) 1. the process or act of pulling or drawing out. 2. the preparation of an extract. . The factory operating rate Operating rate The percentage of total production capacity of a company, industry, or country that is being used. operating rate The portion of capacity at which a business operates. dropped 0.3 percentage point, to 79.6 percent--more than 2V2 percentage points below the level of January 1998. The utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be rates for advanced-processing and primary-processing industries slipped 0.3 percentage point. The utilization rate for mines fell 1.5 percentage points, to a level about 6 percentage points below its long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. average. Temperatures remained relatively warm, and the operating rate for utilities, at about 90 percent, was little changed. NOTICE The data in this release include preliminary estimates of capacity growth for 1999. The capacity estimates in next month's release will incorporate a small change in the method used to interpolate See interpolation. the annual estimates of capacity growth to the monthly frequency. The current monthly capacity figures are computed under the assumption that capacity growth is constant from the beginning to the end of a year but that growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. may change abruptly a·brupt adj. 1. Unexpectedly sudden: an abrupt change in the weather. 2. Surprisingly curt; brusque: an abrupt answer made in anger. 3. between the last months of one year and the first months of the next. The new procedure, which allows capacity growth rates to change smoothly over time, will be incorporated in the data beginning with October October: see month. 1998.
Industrial production and capacity utilization, January 1999
Industrial production,
index, 1992 = 100
Category 1998
Oct.(r) Nov.(r) Dec.(r)
Total 132.4 132.3 132.5
Previous estimate 132.0 132.5 132.8
Major market groups
Products, total(2) 124.9 124.5 124.7
Consumer goods 115.2 115.1 115.4
Business equipment 169.0 168.0 168.0
Construction supplies 128.4 129.1 130.3
Materials 144.5 144.8 145.2
Major industry groups
Manufacturing 136.1 136.4 136.6
Durable 161.2 161.0 161.4
Nondurable 110.9 111.6 111.6
Mining 102.0 101.4 100.3
Utilities 116.5 111.4 114.1
Capacity utilization, percent
Average, Low, High,
1967-98 1982 1998-89
Total 82.1 71.1 85.4
Previous estimate ... ... ...
Manufacturing 81.1 69.0 85.7
Advanced processing 80.5 70.4 84.2
Primary processing 82.4 66.2 88.9
Mining 87.5 80.3 88.0
Utilities 87.4 75.9 92.6
Industrial production,
index, 1992 = 100
Percentage change
Category 1999
1998(1)
Jan. (p) Oct. r Nov. r Dec. r
Total 132.5 .4 -.1 .2
Previous estimate ... .5 -.1 .2
Major market groups
Products, total(2) 124.6 .6 -.3 .2
Consumer goods 115.4 .4 -.1 .3
Business equipment 167.7 1.0 -.6 .0
Construction supplies 130.3 1.2 .5 1.0
Materials 145.3 .1 .2 .3
Major industry groups
Manufacturing 136.7 .7 .2 .1
Durable 161.6 1.0 -.1 -.1
Nondurable 111.6 .3 .7 .7
Mining 98.5 -.4 -.5 -.5
Utilities 114.3 -3.1 -4.4 -4.4
Capacity utilization, percent
1998 1998
Jan. Oct.(r) Nov.(r) Dec.(r)
Total 83.0 81.3 80.9 80.8
Previous estimate ... 81.4 81.0 80.9
Manufacturing 82.2 80.3 80.1 79.9
Advanced processing 81.0 79.6 79.5 79.1
Primary processing 85.2 82.4 82.3 82.4
Mining 90.0 84.7 84.2 83.1
Utilities 87.2 92.0 87.9 90.0
Industrial production,
index, 1992 = 100
Percentage change
Category
1991(1) Jan. 1998
to
Jan. (p) Jan. 1999
Total .0 1.7
Previous estimate ... ...
Major market groups
Products, total(2) -.1 1.6
Consumer goods .0 -.5
Business equipment -.1 7.3
Construction supplies .0 3.8
Materials .1 1.9
Major industry groups
Manufacturing .1 2.2
Durable .1 5.1
Nondurable -.1 -1.3
Mining -1.8 -8.5
Utilities .2 4.2
Capacity MEMO
utilization, Capacity,
percent percentage
change,
Jan. 1998
1999 to
Jan. (p) Jan. 1999
Total 80.5 4.9
Previous estimate ... ...
Manufacturing 79.6 5.5
Advanced processing 78.8 6.5
Primary processing 82.1 2.8
Mining 81.6 .9
Utilities 90.1 .9
NOTE. Data seasonally adjusted Seasonally adjusted Mathematically adjusted by moderating a macroeconomic indicator (e.g., oil prices/imports) so that relative comparisons can be drawn from month to month all year. adjusted monthly data. (1.) Change from preceding month. (2.) Contains components in addition to those shown. (r) Revised. (p) Preliminary. |
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