Industrial production and capacity utilization for April 1998.Released for publication May 15 Industrial production rose 0.1 percent in April after a revised 0.3 percent increase in March and declines in February February: see month. and January January: see month. . In manufacturing, production rose 0.3 percent after two months of declines; manufacturing output was still below its December December: see month. level. The output of mines decreased 0.2 percent, and the output of utilities decreased 1.9 percent. At 127.8 percent of its 1992 average, total industrial production in April was 3.8 percent higher than it was in April 1997. The rate of industrial 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. decreased 0.3 percentage point in April, to 81.9 percent. MARKET GROUPS The production 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 remained fiat [Latin, Let it be done.] In old English practice, a short order or warrant of a judge or magistrate directing some act to be done; an authority issuing from some competent source for the doing of some legal act. in April: The output 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. rose 0.9 percent, and the output of non-energy 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. goods edged up, but these increases were offset by a 1.7 percent decline in the production of energy goods, most notably in residential sales of electricity and gas. The production increase within the durable consumer goods category was widespread. The output of automotive products advanced 0.8 percent but remained well below the high at the end of last year. Home computing computing - computer equipment, appliances, and carpeting also posted significant gains. Within the non-energy nondurable consumer goods category, the strength in food products was nearly offset by declines in the production of cigarettes, clothing, consumer chemicals, and paper products. The output of business equipment increased 1.0 percent; a second month of strong gains after having slowed earlier in the year. Although the output of computers accelerated in the first quarter, the output of most other types of equipment slowed. The April increase resulted from gains in most groups other than industrial equipment, in which output declined 0.7 percent. The production of construction supplies declined for a second consecutive month. However, its April level remained well above its level at the end of last year. The output of materials stayed unchanged continuing its sluggish behavior of recent months. While the production of durable materials edged up in April, the output of nondurable and energy materials decreased. Among durable goods materials, the output of parts for consumer goods, which had spiked spike 1 n. 1. a. A long, thick, sharp-pointed piece of wood or metal. b. A heavy nail. 2. A spikelike part or projection, as: a. up in the fourth quarter, decreased 0.3 percent after a substantial decline in the first quarter. The output of equipment parts grew once more at a moderate rate; semiconductors and parts for computers and electronic communication equipment posted the most significant gains. INDUSTRY GROUPS Durable goods production increased 0.4 percent after having posted a small gain in March and declines earlier in the year. Increases in 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 fixtures, computer and office equipment, semiconductors, motor vehicles and parts, and instruments were just partially offset by weakness elsewhere. In particular, the output of primary and 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: metals and of aircraft and parts declined once more. Nondurable goods production increased 0.2 percent and is just 1.6 percent above its level in April 1997. Continuing weaknesses in the production of tobacco, textiles textiles, all fabrics made by weaving, felting, knitting, braiding, or netting, from the various textile fibers (see fiber). Types of Textiles , apparel, paper, and chemicals were more than offset by strength in other industries; the largest gain came in rubber and plastics products. The 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. in manufacturing declined, to 80.8 percent. 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 in advanced-processing industries remained flat at a low level, while the rate for primary-processing industries fell for the fourth consecutive month. The operating rate in advanced-processing industries was 1.4 percentage points below its 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 average, whereas the utilization rate in primary-processing industries was still significantly above its long-run average. [Chart ILLUSTRATION OMITTED] Industrial production and capacity utilization, April 1998
Industrial production, 1992 = 100
Category 1998
Jan.(r) Feb.(r) Mar.(r) Apr.(p)
Total 127.8 127.4 127.7 127.8
Previous estimate 127.7 127.5 127.7 ...
Major market groups
Products, total(2) 121.3 120.6 121.0 121.2
Consumer goods 116.6 115.2 115.5 115.5
Business equipment 147.3 146.7 147.8 149.2
Construction supplies 125.2 125.9 125.1 124.9
Materials 138.2 138.2 138.5 138.5
Major industry groups
Manufacturing 131.1 130.7 130.5 130.8
Durable 148.3 147.8 148.1 148.7
Nondurable 113.6 113.1 112.4 112.6
Mining 108.4 107.8 107.4 107.2
Utilities 108.7 108.5 115.1 112.8
Percentage change
1988(1)
Jan.(r) Feb.(r) Mar.(r) Apr.(p)
Total -.1 -.3 .3 .1
Previous estimate -.2 -.2 .2 ...
Major market groups
Products, total(2) .3 -.6 .3 .2
Consumer goods .6 -1.2 .2 .0
Business equipment -.9 -.4 .8 1.0
Construction supplies 1.6 .6 -.7 -.1
Materials -.5 .0 .2 .0
Major industry groups
Manufacturing .2 -.4 -.2 .3
Durable -.2 -.3 .2 .4
Nondurable .6 -.4 -.6 .2
Mining 2.6 -.5 -.4 -.2
Utilities -4.9 -.2 6.0 -1.9
Percentage change
Apr. 1997
to
Apr. 1998
Total 3.8
Previous estimate ...
Major market groups
Products, total(2) 3.4
Consumer goods 1.8
Business equipment 8.2
Construction supplies 2.5
Materials 4.5
Major industry groups
Manufacturing 4.3
Durable 6.6
Nondurable 1.6
Mining 1.6
Utilities .3
Capacity utilization, percent
Average, Low, High 1997
1967-97 1982 1988-89 Apr.
Total 82.1 71.1 85.4 82.6
Previous estimate ... ... ... ...
Manufacturing 81.1 69.0 85.7 81.6
Advanced processing 80.5 70.4 84.2 79.6
Primary processing 82.4 66.2 88.9 86.2
Mining 87.5 80.3 88.0 89.5
Utilities 87.3 75.9 92.3 89.2
Capacity utilization, percent
1998
Jan.(r) Feb.(r) Mar.(r) Apr.(p)
Total 82.9 82.3 82.2 91.9
Previous estimate 82.8 82.3 82.2 ...
Manufacturing 82.1 81.5 81.0 80.8
Advanced processing 80.3 79.6 79.1 79.1
Primary processing 86.1 85.6 85.1 84.8
Mining 91.6 91.1 90.7 90.5
Utilities 85.4 85.2 90.2 88.4
MEMO
Capacity,
percentage
change,
Apr. 1997
to
Apr. 1998
Total 4.7
Previous estimate ...
Manufacturing 5.4
Advanced processing 6.3
Primary processing 3.4
Mining .6
Utilities 1.2
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. 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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