Industrial production and capacity utilization for October 2001.Released for publication November November: see month. 16 In October October: see month. , industrial production fell 1.1 percent, to 139.3 percent of its 1992 average, and was 6.3 percent below its level a year ago. Manufacturing output decreased 1.2 percent in October, mining output decreased 1.3 percent, and utilities production rose 0.6 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 fell 0.9 percentage point, to 74.8 percent, a level 7.3 percentage points below its 1967-2000 average. 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 declined 0.4 percent in October. A drop of 2.6 percent in durable consumer goods included sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. declines
in the output of automotive products, appliances, furniture and
carpeting goods, and miscellaneous goods. Despite decreases in all major
categories 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. consumer goods (the largest being a 1.1 percent drop in clothing output), a 2.1 percent increase in consumer energy products pushed the index for total consumer nondurables to a 0.2 percent gain for the month. The production of business equipment, which fell 1.7 percent in October, was nearly 12 percent lower than in October 2000. The output of transit equipment declined more than 3 percent for a third consecutive month and has dropped 13.6 percent over the past twelve months. Production indexes for 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 and for industrial and other equipment declined more than 1 percent in October. The output of defense and space equipment fell 0.5 percent but remained 1.6 percent above its level a year ago. The output of construction supplies, which decreased 2.0 percent, showed significant losses in many industries, including 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 plywood plywood, manufactured board composed of an odd number of thin sheets of wood glued together under pressure with grains of the successive layers at right angles. Laminated wood differs from plywood in that the grains of its sheets are parallel. . The production of business supplies slipped 0.3 percent and was 7.7 percent below its level a year ago. The output of industrial materials declined 1.3 percent, its largest drop since June June: see month. 1998. The output of steel and parts for motor vehicles declined substantially in October; overall, durable materials production decreased 1.8 percent, to 10 percent below its level a year ago. The output of nondurable materials, which had increased in the third quarter, fell 0.9 percent in October; most major components posted declines. The 0.6 percent decline in the production of energy materials was mostly attributable to reductions in coal and crude oil output. INDUSTRY GROUPS After having fallen 1.1 percent in September September: see month. , manufacturing output dropped 1.2 percent in October. The combined two-month decrease was last exceeded in the winter of 1981-82. Reductions were evident in nearly all major industries. 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. fell 1.9 percent in October and has declined more than 9 percent over the past twelve months. The October decline was marked by noticeable cutbacks in the output of primary metals, motor vehicles and parts, lumber and products, and furniture and fixtures. The production of nondurables fell 0.4 percent; decreases in apparel products, textile mill products, and paper and products more than offset a 2.9 percent increase in petroleum products. The overall 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. declined about 1 percentage point, to 73.1 percent, and decreases appeared both in advanced-processing and primary-processing industries. At mines, production fell 1.3 percent; the utilization rate decreased to 88.6 percent but remained above its long-run average. The output of utilities increased 0.6 percent; the operating rate rose 0.3 percentage point, to 86 percent, 1.6 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. REVISION OF INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION On November 27 at 11 a.m. eastern time, the Federal Reserve Board will publish revisions to the index of industrial production (IP), to the related measures of capacity and capacity utilization, and to the index of industrial use of electric power. The updated measures will reflect the incorporation of newly available, more comprehensive source data typical of annual revisions. The new source data are for recent years, primarily 1999 and 2000, although data from 1992 onward on·ward adj. Moving or tending forward. adv. also on·wards In a direction or toward a position that is ahead in space or time; forward. will be subject to revision. Industrial production and capacity utilization will continue to be based on the 1987 Standard Industrial Classification (SIC) until the 2002 annual revision, after which they will be constructed from the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Industrial Classification System (NAICS NAICS North American Industry Classification System ). The new NAICS-related production indexes will be based on annual output measures that are constructed by reclassifying the establishments in historical Censuses of Manufactures and Mineral Industries under NAICS; annual output indexes constructed this way will maximize the reliability and historical consistency of the IP industry detail. The updating of source data for IP in the 2001 annual revision will include annual data from the 1999 Bureau of the Census Noun 1. Bureau of the Census - the bureau of the Commerce Department responsible for taking the census; provides demographic information and analyses about the population of the United States Census Bureau Annual Survey of Manufactures and from selected editions of its 1999 and 2000 Current Industrial Reports. Annual data from the U.S. Geological Survey The term geological survey can be used to describe both the conduct of a survey for geological purposes and an institution holding geological information. A geological survey regarding metallic and nonmetallic non·me·tal·lic adj. 1. Not metallic. 2. Chemistry Of, relating to, or being a nonmetal. Adj. 1. minerals (except fuels) for 1999 and 2000 will also be introduced. The updating will include revisions to the monthly indicator for each industry (either physical product data, production-worker hours, or electric power usage) and to seasonal factors. Capacity and capacity utilization will be revised to incorporate preliminary data from the 2000 Survey of Plant Capacity of the Bureau of the Census, which covers manufacturing, along with other new data on capacity from the U.S. Geological Survey, the Department of Energy, and other organizations. The statistics on the industrial use of electric power will incorporate additional information received from utilities for the past few years and will include some data from the 1997 Census of Manufactures and the 1998 and 1999 Annual Survey of Manufactures. Once the revision is published, it will be made available on the Board's web site (www.federalreserve.gov/releases/g17). The revised data will also be available through the web site of the Department of Commerce. Further information on these revisions is available from the Board's Industrial Output Section (telephone 202-452-3197). Discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of "Industrial Production and Capacity Utilization" in the Federal Reserve Bulletin. "Industrial Production and Capacity Utilization" will not be reprinted in the Federal Reserve Bulletin after the December 2001 issue. The Federal Reserve's monthly G.17 statistical release, "Industrial Production and Capacity Utilization," which this section of the Bulletin summarizes each month, is available on the Board's web site (www.federalreserve.gov/releases/g17/); historical data back to 1919 are also available on the web site. The data are also available in paper copies and on diskettes from Publications Services, Mail Stop 127, Board of Governors of the Federal Reserve System Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. , Washington, DC 20551 (tel. 202-452-3244). Other reprints will also be eliminated from the Bulletin after December 2001: congressional testimony, the FOMC See Federal Open Market Committee. FOMC See Federal Open Market Committee (FOMC). minutes, the quarterly report "Treasury and Federal Reserve Foreign Exchange Operations," and the annual report "Domestic Open Market Operations Open Market Operations The buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite. ," both by the Federal Reserve Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. (the text portion of "Open Market Operations" will be reprinted in the Board's Annual Report rather than in the Bulletin). The documents are widely distributed Adj. 1. widely distributed - growing or occurring in many parts of the world; "a cosmopolitan herb"; "cosmopolitan in distribution" cosmopolitan bionomics, environmental science, ecology - the branch of biology concerned with the relations between organisms when originally published, and several sources for historical information are available. [GRAPHICS OMITTED]
Industrial production and capacity utilization, October 2001
Industrial production, index, 1992 = 100
Percent
change
Category 2001 2001 (1)
July Aug. Sept. Oct. July Aug.
(r) (r) (r) (p) (r) (r)
Total 142.7 142.2 140.8 139.3 -.1 -.4
Previous estimate 142.7 141.8 140.3 ... -.1 -.7
Major market groups
Products, total (2) 132.5 131.4 130.0 128.8 .0 -.8
Consumer goods 122.1 121.1 120.4 120.0 .4 -.8
Business equipment 186.5 184.2 179.3 176.2 -.3 -1.2
Construction supplies 139.1 138.3 138.0 135.3 .1 -.5
Materials 161.1 161.6 160.3 158.2 -.2 .3
Major industry groups
Manufacturing 147.7 146.8 145.3 143.6 .2 -.6
Durable 187.5 185.9 182.6 179.2 .3 -.9
Nondurable 111.6 111.2 110.9 110.6 .0 -.3
Mining 102.4 102.8 102.7 101.3 -.9 .3
Utilities 117.4 120.3 119.1 119.9 -2.1 2.5
Capacity utilization, percent
Ave- 2001
rage, High, 2000
1967- Low, 1988- July Aug.
00 1982 89 Oct. (r) (r)
Total 82.1 71.1 85.4 82.0 77.0 76.6
Previous estimates ... ... ... ... 77.0 76.4
Manufacturing 81.1 69.0 85.7 81.2 75.6 75.0
Advanced processing 80.6 71.0 84.2 79.9 76.1 75.4
Primary processing 82.2 65.7 88.3 84.5 75.8 75.3
Mining 87.4 80.3 88.0 86.3 89.3 89.7
Utilities 87.6 75.9 92.6 89.5 85.1 86.9
Industrial production,
index, 1992 = 100
Percent
change
Category 2001 (1)
Oct. 2000
Sept. Oct. to
(r) (r) Oct. 2001
Total -1.0 -1.1 -6.3
Previous estimate -1.0 ... ...
Major market groups
Products, total (2) -1.1 -.9 -5.5
Consumer goods -.6 -.4 -2.2
Business equipment -2.6 -1.7 -11.9
Construction supplies -.2 -2.0 -4.9
Materials -.8 -1.3 -7.6
Major industry groups
Manufacturing -1.1 -1.2 -7.3
Durable -1.8 -1.9 -9.3
Nondurable -.2 -.4 -4.9
Mining -.1 -1.3 1.2
Utilities -1.0 .6 -.1
Capacity
utilization,
percent
MEMO
Capacity,
percent
2001 change,
Oct. 2000
Sept. Oct. to
(r) (p) Oct. 2001
Total 75.7 74.8 2.6
Previous estimates 75.5 ... ...
Manufacturing 74.1 73.1 2.9
Advanced processing 74.3 73.4 1.9
Primary processing 74.7 73.6 4.8
Mining 89.7 88.6 -1.4
Utilities 85.7 86.0 4.0
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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