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INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
(December 15, 1999) Industrial production advanced 0.3 percent in November after a 0.8 percent increase in October. At 139.5 percent of its 1992 average, industrial production in November was 4.3 percent higher than in November 1998. The rate of capacity utilization for total industry was unchanged at 81.0 percent, a level 1 percentage point below its 1967-98 average.
Market Groups
The output of consumer goods ticked up 0.1 percent in November after having risen 1.6 percent in October. The production of durable consumer goods fell back 0.3 percent, pulled down by a drop in home appliances and televisions. After having advanced nearly 1-1/2 percent in October, the output of nondurable non-energy consumer goods rose 3/4 percent, led by increases in food, tobacco, and consumer chemical production. A 3.6 percent decline in the output of energy products reflected an unusually warm November as well as disruptions at a couple of petroleum refineries.
The production of business equipment increased for a second month; gains in information processing equipment and other equipment offset decreases in industrial and transit equipment. Within the information processing group, the output of computers increased 2.1 percent, a step down from the high rates of growth seen recently. Within the "other equipment" category, farm machinery posted a large increase after having fallen much more sharply during the past spring and summer. The output of transit equipment was once again constrained by a drop in the production of commercial aircraft and parts.
The production of construction supplies rose 3/4 percent for the third month in a row to a level 4-1/2 percent higher than in November 1998. The output of materials increased 0.6 percent, a rise similar to the gains posted in the previous two months. Sizable increases in the production of steel and semiconductors (the output of which has accelerated in the past two months) lifted the production of durable goods materials 1.2 percent in November. The output of nondurable goods materials, which had jumped nearly 1 percent in October, edged up 0.1 percent.
Industry Groups
Manufacturing output rose 1/2 percent in November after a 3/4 percent gain in October. The increase in the output of durables was led by gains at makers of primary metals (particularly iron and steel), motor vehicles and parts, computers, semiconductors, and communications equipment. While most other durable goods industries recorded increases, the output of commercial aircraft and construction machinery declined noticeably. The ongoing contraction in the production of commercial aircraft reduced the output of aerospace and miscellaneous transportation equipment in November to a level about 13 percent below that of November 1998.
Production in nondurable manufacturing increased for a fourth month after earlier weakness; the level of production for nondurable manufacturing is 1.4 percent higher than a year earlier. Among nondurables, food production increased nearly 1 percent for a second month, as did chemicals and products. Losses were posted by the petroleum products, textile, apparel, and printing and publishing industries.
The factory operating rate edged up 0.1 percentage point, to 80.1 percent, the highest level since November 1998. The utilization rate for durable manufacturing was a bit above its 1967-98 average, while the rate for nondurable manufacturing industries was well below its average.
The output at utilities fell back 2-1/4 percent in November; mine production, which was boosted by an increase in oil and gas well drilling, increased for the second straight month.
Industrial Production (Seasonally Adjusted)
Percent Change-- Sep 99
RevisedOct 99
RevisedNov 99 Preliminary
Nov 98
to Nov 99Total Index 0.2
0.8
0.3
4.3
Previous estimates 0.0
0.6
--
--
Major market groups Products, total -0.1
1.1
0.1
3.1
Consumer goods -0.6
1.6
0.1
2.8
Business equip. -0.1
0.6
0.3
5.0
Const. supplies 0.8
0.8
0.7
4.4
Materials 0.7
0.5
0.6
6.3
Major industry groups Manufacturing 0.3
0.8
0.5
4.6
Durable 0.3
0.7
0.6
7.0
Nondurable 0.2
0.9
0.3
1.4
Mining -0.1
0.8
0.7
-1.5
Utilities -0.8
1.9
-2.3
5.0
Capacity Utilization
Percent of Capacity-- -- -- -- Capacity
Growth-- Sep 99-R
Oct 99-R
Nov 99 -P
Nov 98
to Nov 99Total Industry 80.6
81.0
81.0
4.2
Previous Estimates 80.4
80.7
--
--
Manufacturing 79.7
80.0
80.1
4.7
Advanced processing 78.7
79.1
79.1
5.6
Primary processing 82.8
83.0
83.3
2.4
Mining 81.9
82.6
83.2
-0.2
Utilities 91.4
93.0
90.8
1.4
December 15, 1999 Federal Reserve Board
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