Industrial Production and Capacity Utilization for June 2001.Released for publication July July: see month. 17 Industrial production fell 0.7 percent in June June: see month. , to 142.5 percent of its 1992 average; second-quarter production was down 5.6 percent at an annual rate. After nine consecutive months of decline, industrial production in June was more than 3 1/2 percent below its level in June 2000. Manufacturing output, which also posted its ninth consecutive monthly decline, contracted 0.8 percent in June, to more than 4 percent below its year-earlier level. Mining output weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. 0.4 percent, and
utilities production increased 0.9 percent. The rate of 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. for total industry sank to 77 percent, more than 5
percentage points below its 1967-2000 average.[GRAPHS OMITTED] MARKET GROUPS The output of 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 dipped dip v. dipped, dip·ping, dips v.tr. 1. To plunge briefly into a liquid, as in order to wet, coat, or saturate. 2. 0.2 percent in June, despite a gain in the production of consumer energy goods. Production of automotive products, which jumped in May, fell back 1.3 percent in June; the level of production was nearly 7 percent below that of June 2000. Elsewhere among consumer durables Consumer durables Consumer products that are expected to last three years or more, such as an automobile or a home appliance. consumer durables See durable goods. , the production of home audio and video equipment, appliances, and household furniture weakened noticeably no·tice·a·ble adj. 1. Evident; observable: noticeable changes in temperature; a noticeable lack of friendliness. 2. Worthy of notice; significant. . The output 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 was flat. The output of consumer energy products increased 1.7 percent, with sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz a·ble·ness n. gains in
the production of automotive gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by and in utility sales to
residences. The production of nondurable consumer goods excluding energy
contracted 0.3 percent, as the production of foods and tobacco and
clothing continued to decrease.The output of business equipment fell 1.4 percent in June. The production of transit equipment dropped back in June; although output in this category rose, on average, in the second quarter, it remained more than 10 percent below its level in June 2000. Medium and heavy truck production--the hardest-hit transit industry--was more than 40 percent below its June 2000 level. The 1.2 percent decline in the production of information-processing equipment reflected, in part, continued losses in the communications equipment industry; the output of computer and office equipment was flat in June. The output of industrial and other equipment fell 1.8 percent, with widespread declines posted within the sector. Broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased weakness in the construction supplies industries led to a reduction in the output of intermediate products. The production of business supplies edged up slightly after six consecutive months of decline. The output of materials fell back 0.9 percent in June, and the losses were widespread. Within durable materials industries, noticeable cutbacks were made in the production of both automotive parts and semiconductors. Among nondurable materials, the output of chemicals and of textiles textiles, all fabrics made by weaving, felting, knitting, braiding, or netting, from the various textile fibers (see fiber). Types of Textiles continued to fall. The output of energy materials was flat, with small offsetting changes among the components. INDUSTRY GROUPS The weakness in manufacturing production in June was widespread across industries. Overall manufacturing fell 0.8 percent, and both the manufacturing aggregate excluding motor vehicles and parts and the aggregate excluding high-technology industries fell by nearly the same amount. Overall manufacturing output fell at an annual rate of 5.9 percent in the second quarter, after having dropped 7.9 percent in the first quarter. The weakness in the second quarter was evident among both durables Durables A category of consumer goods, durables are products that do not have to be purchased frequently. Some examples of durables are appliances, home and office furnishings, lawn and garden equipment, consumer electronics, toy makers, small tool manufacturers, sporting goods, and nondurables. The largest drops were in electrical machinery (most notably semiconductors), textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. mill products, industrial machinery and equipment, fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: metal products, printing and publishing, and chemical products. Only four industries showed advances in output in the second quarter: motor vehicles and parts, 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 and products, paper and products, and petroleum products. The output of motor vehicles and parts increased at an annual rate of 35 percent after having fallen at an average rate of 25 percent in each of the previous two quarters. 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 3/4 of a percentage point, to 75.5 percent in June. 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 rate for primary-processing industries declined to 75.4 percent, while the rate for advanced-processing industries declined to 76.2 percent. With the exceptions of stone, clay, and glass products, petroleum products, and miscellaneous manufactures, operating rates for the major manufacturing industries manufacturing industries npl → industrias fpl manufactureras manufacturing industries npl → industries fpl de transformation remained below their long-run adj. 1. relating to or extending over a relatively long time; as, the long-run significance of the elections s>. Adj. 1. long-run averages. Capacity utilization in high-technology industries (computers, communications equipment, and semiconductors and related electronic components) dropped 2 percentage points in June, to 67.5 percent. The operating rate at utilities picked up slightly to 86.6 percent. The operating rate for mining edged down to 89.1 percent.
Industrial production and capacity utilization, June 2001
Industrial production, index,
1992 = 100
Category 2001(1)
Mar.(r) Apr.(r) May(r) June(p)
Total 145.0 144.2 143.5 142.5
Previous estimate 145.1 144.2 143.1 ...
Major market groups
Products, total(2) 134.5 133.6 133.1 132.4
Consumer goods 122.4 121.7 121.7 121.5
Business equipment 195.6 193.0 191.8 189.0
Construction supplies 140.5 139.6 138.7 137.6
Materials 163.9 163.4 162.2 160.7
Major industry groups
Manufacturing 150.0 149.3 148.6 147.4
Durable 191.3 189.9 189.4 187.0
Nondurable 112.7 112.4 111.7 111.3
Mining 102.7 102.8 102.7 102.3
Utilities 122.0 120.0 118.0 119.0
Capacity utilization percent
2000
Average Low High,
1967-00 1982 1988-89
June
Total 82.1 71.1 85.4 82.7
Manufacturing 81.1 69.0 85.7 82.0
Advanced processing 80.6 71.0 84.2 79.9
Primary processing 82.2 65.7 88.3 86.5
Mining 87.4 80.3 88.0 86.2
Utilities 87.6 75.9 92.6 91.7
Industrial production, index,
1992 = 100
Percent change
June
Category 2001(1) 2000
to
Mar. Apr. May June June
(r) (r) (r) (p) 2001
Total -.3 -.5 -.5 -.7 -3.6
Previous estimate -.2 -.6 -.8 ... ...
Major market groups
Products, total(2) -.1 -.7 -.4 -.5 -2.7
Consumer goods .1 -.6 .0 -.2 -2.2
Business equipment .1 -1.3 -.6 -1.4 -2.0
Construction supplies .4 -.7 -.6 -.7 -4.0
Materials -.7 -.3 -.7 -.9 -5.1
Major industry groups
Manufacturing -.5 -.5 -.5 .8 -4.2
Durable .1 -.7 -.3 -1.2 -3.9
Nondurable -1.2 -.2 -.7 -.3 -4.6
Mining 1.3 .1 -.1 -.4 1.9
Utilities .2 -1.7 -1.7 .9 -2.2
MEMO
Capacity
Capacity utilization percent
percent change,
June
2001 2000
to
Mar. Apr. May June June
(r) (r) (r) (p) 2001
Total 78.7 78.1 77.6 77.0 3.6
Manufacturing 77.3 76.8 76.3 75.5 4.0
Advanced processing 77.9 77.2 76.9 76.2 2.1
Primary processing 77.4 77.1 76.3 75.4 7.1
Mining 89.2 89.3 89.3 89.1 -1.4
Utilities 89.6 87.8 86.1 86.6 3.6
NOTE. Data seasonally adjusted or calculated from
seasonally adjusted monthly data.
(1.) Change from preceding month.
(2.) Contains components in addition to those shown.
(r) Revised.
(p) Preliminary.
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