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Industrial production.

Industrial Production

Industrial production was unchanged in May after having increased a revised 0.6 percent in April. In May, further gains occurred in business equipment, excluding motor vehicles, and in materials. However, production of construction supplies declined for the fourth successive month, and output of both cars and trucks dropped back to about their March levels. At 141.4 percent of the 1977 average, the total index in May was 3.9 percent higher than it was a year earlier. Manufacturing output edged down in May; capacity utilization in manufacturing declined 0.3 point to 84.0 percent. Detailed data for capacity utilization are shown separately in "Capacity Utilization," Federal Reserve monthly statistical release G.3.

In market groups, production of consumer goods decreased in May as auto assemblies fell to an annual rate of 7.1 million units, from 7.4 million units in April; output of light trucks for consumer use also declined. Production of other consumer goods edged down as output of consumer energy, particularly gasoline and distillate fuel oil, fell sharply; the remaining sectors, on balance, were little changed. Output of business equipment excluding motor vehicles rose 0.5 percent in May, the same rate of growth as in April. Manufacturing and commercial equipment, as well as output of commercial aircraft, continued to post gains. Production of materials rose 0.2 percent in May after having risen sharply in April. Energy materials advanced again in May as extraction of crude oil increased. Non-durables rose again last month, reflecting further gains in chemicals and textiles. Durable materials were unchanged; a decline in parts for consumer durables, mainly motor vehicles, was offset by small gains in equipment parts and basic metals.

In industry groups, within manufacturing, transportation equipment, refined petroleum products, and lumber declined significantly. In contrast, instruments, nonelectrical machinery, and chemicals posted gains. Outside manufacturing, production in mining rose, but output at utilities declined.
COPYRIGHT 1989 Board of Governors of the Federal Reserve System
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1989, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Federal Reserve Bulletin
Date:Aug 1, 1989
Previous Article:Priced services, 1988 and 1989.
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