Industrial production and capacity utilization for September 2001.Released for publication October October: see month. 16 Industrial production fell 1.0 percent in September September: see month. , its twelfth consecutive monthly decline. At 140.3 percent of its 1992 average, output was 5.8 percent below its level in September 2000. For the third quarter as a whole, total industrial production declined at an annual rate of 6.2 percent. Manufacturing output contracted 1.1 percent in September and was 6.7 percent below its year-ago level. Utilities production fell 1.8 percent in September, and mining output increased 0.3 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 0.9 percentage point, to 75.5 percent, a level 6.6 percentage points below its 1967-2000 average and about 7 percentage points below its level in September 2000. 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 fell 0.7 percent in September; for the third quarter as a whole, production dropped 3.2 percent at an annual rate, the largest quarterly decline since the first quarter of 1991. Both durable and 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 fell in September. Among 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, , home electronics dropped 3.0 percent and was 19.1 percent below its level in September 2000. The output of automotive products also fell about 3 percent, while the other major categories of 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. registered smaller declines. Nondurable consumer goods, which slipped 0.3 percent, showed declines in all categories except paper products, which increased 0.4 percent. The production of business equipment dropped 2.3 percent in September; for the third quarter as a whole, it tumbled 13.4 percent at an annual rate, its largest quarterly decline since the fourth quarter of 1982. All major categories declined in September; the output indexes for transit equipment and for industrial and other equipment have contracted nearly 12 percent in the past twelve months. The production of defense and space equipment, which ticked up 0.2 percent in September, was 3.6 percent above its September 2000 level. The output of construction supplies decreased 0.6 percent in September, while the output of business supplies fell 1.5 percent; a sharp cutback cut·back n. 1. A decrease; a curtailment: "The political effects of food cutbacks could be devastating" New York Times. 2. in jet fuel production, which was related to the reduction in air traffic, contributed importantly to the drop for business supplies. The production of industrial materials declined 0.9 percent, with a large drop in 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 and little change, on balance, in either nondurable or energy materials. For the third quarter as a whole, production of industrial materials fell at an annual rate of 6.4 percent. INDUSTRY GROUPS Manufacturing output fell 1.1 percent in September and the weakness was widespread among industries. In the third quarter, manufacturing declined at an annual rate of 6.6 percent, after having fallen at a 5.1 percent rate in the second quarter. The overall production both of durable and nondurable goods decreased in the third quarter; output rose during the quarter in only two industries--motor vehicles and parts and 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. Among durable goods, the largest third-quarter declines were in machinery, especially the high-technology industries (computers, communications equipment, and semiconductors). Also down notably were furniture and fixtures, primary metals, aerospace and miscellaneous transportation equipment, and miscellaneous manufacturing. Among nondurables, declines were largest in apparel products, 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, petroleum products, printing and publishing, and paper and products. In September, all major industry groups in manufacturing were below year-ago levels. 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 73.8 percent, a level 7.3 percentage points below the 1967-2000 average. A 0.3 percent increase in the production at mines retraced the August decline; 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 at mines rose 0.3 percentage point, to 89.3 percent, a level about 2 percentage points above its 1967-2000 average. The output of utilities fell back 1.8 percent in September; at 85.7 percent, the operating rate at utilities was about 2 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 November: see month. 27, 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 December: see month. 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 Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , DC 20551 (tel. 202-452-3244). Other reprints will also be eliminated from the Bulletin after December 2001: congressional testimony Oral evidence offered by a competent witness under oath, which is used to establish some fact or set of facts. Testimony is distinguishable from evidence that is acquired through the use of written sources, such as documents. testimony n. , 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, September 2001
Industrial production, index, 1992 = 100
2001
Category June (r) July (r) Aug. (r) Sept. (p)
Total 142.8 142.7 141.8 140.3
Previous estimate 142.7 142.6 141.5 ...
Major market groups
Products, total (2) 132.4 132.5 131.3 129.9
Consumer goods 121.6 121.9 120.9 120.1
Business equipment 187.1 186.7 184.8 180.5
Construction supplies 139.0 139.0 138.5 137.6
Materials 161.4 161.1 160.5 159.2
Major industry groups
Manufacturing 147.5 147.6 146.3 144.7
Durable 186.9 187.6 185.7 182.5
Nondurable 111.5 111.3 110.5 110.1
Mining 103.4 102.3 102.0 102.3
Utilities 119.9 119.0 121.3 119.1
Capacity utilization, percent
2000
Average, Low, High,
1967-00 1982 1988-89 Sept.
Total 82.1 71.1 85.4 82.4
Previous estimates ... ... ... ...
Manufacturing 81.1 69.0 85.7 81.7
Advanced processing 80.6 71.0 84.2 80.2
Primary processing 82.2 65.7 88.3 85.2
Mining 87.4 80.3 88.0 86.4
Utilities 87.6 75.9 92.6 91.0
Industrial production, index,
1992 = 100
Percent change
2001(1)
Category June (r) July (r) Aug. (r)
Total -1.0 -.1 -.7
Previous estimate -1.0 -.1 -.8
Major market groups
Products, total (20) -.9 .0 -.8
Consumer goods -.5 .2 -.8
Business equipment -2.5 -.2 -1.0
Construction supplies -.2 .0 -.4
Materials -1.1 -.2 -.4
Major industry groups
Manufacturing -1.2 .1 -.9
Durable -1.7 .3 -1.0
Nondurable -.6 -.2 -.7
Mining -.4 -1.0 -.3
Utilities .3 -.7 1.9
Capacity utilization, percent
2001
June (r) July (r) Aug. (r)
Total 77.1 77.0 76.4
Previous estimates 77.1 76.9 76.2
Manufacturing 75.6 75.5 74.8
Advanced processing 76.1 76.0 75.3
Primary processing 75.8 75.6 74.8
Mining 90.0 89.2 89.0
Utilities 87.2 86.3 87.6
Industrial production,
index, 1992 = 100
Percent change
2001(1)
Sept. 2000
to
Category Sept. (p) Sept. 2001
Total -1.0 -5.8
Previous estimate ... ...
Major market groups
Products, total (20) -1.1 -5.0
Consumer goods -.7 -3.0
Business equipment -2.3 -9.5
Construction supplies -.6 -3.9
Materials -.9 -7.1
Major industry groups
Manufacturing -1.1 -6.7
Durable -1.8 -8.0
Nondurable -.3 -5.0
Mining .3 1.8
Utilities -1.8 -2.1
Capacity
utiliza-
tion,
percent
2001
MEMO
Capacity,
percent
Sept. (p) change,
Sept. 2000
to
Sept. 2001
Total 75.5 2.9
Previous estimates ... ...
Manufacturing 73.8 3.2
Advanced processing 74.3 2.0
Primary processing 74.0 5.4
Mining 89.3 -1.4
Utilities 85.7 3.9
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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