Industrial production edged up 0.1 percent in March and increased at an annual rate of 7.8 percent in the first quarter, the Federal Reserve Bank announced on April 15. Manufacturing output rose 0.9 percent in March, led by widespread gains among durable goods industries. Factory production was likely held down in February by the winter storms but nonetheless rose at an annual rate of 6.6 percent for the first quarter as a whole. The output of mines increased 2.3 percent in March. Utilities output dropped 6.4 percent; after a relatively cold February, demand for heating fell in March as temperatures climbed to above-normal levels. At 101.6 percent of its 2002 average, industrial output in March was 4.0 percent above its year-earlier level. Capacity utilization for total industry advanced 0.2 percentage point to 73.2 percent, a rate 7.4 percentage points below its average from 1972 to 2009, but 3.7 percentage points above the rate from a year earlier.
|
Industrial production |
2002=100 | Percent change | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2009 | 2010 | 2009 | 2010 |
Mar. '09 to Mar. '10 |
|||||||||
| Oct.[r] | Nov.[r] | Dec.[r] | Jan.[r] | Feb.[r] | Mar.[p] | Oct.[r] | Nov.[r] | Dec.[r] | Jan.[r] | Feb.[r] | Mar.[p] | ||
| Total index | 98.9 | 99.6 | 100.3 | 101.2 | 101.5 | 101.6 | .2 | .7 | .7 | 1.0 | .3 | .1 | 4.0 |
| Previous estimates | 98.9 | 99.5 | 100.0 | 100.9 | 101.0 | .2 | .7 | .5 | .9 | .1 | |||
| Major market groups | |||||||||||||
| Final Products | 102.9 | 102.9 | 103.7 | 104.9 | 105.1 | 105.4 | .8 | .0 | .7 | 1.2 | .2 | .3 | 3.8 |
| Consumer goods | 100.3 | 100.3 | 100.9 | 101.8 | 101.8 | 101.6 | .8 | .1 | .6 | .9 | -.1 | -.2 | 3.3 |
| Business equipment | 109.6 | 109.3 | 110.6 | 112.3 | 113.0 | 114.6 | .8 | -.3 | 1.2 | 1.5 | .7 | 1.4 | 3.6 |
| Nonindustrial supplies | 90.4 | 90.9 | 91.5 | 92.1 | 91.9 | 91.6 | -.4 | .6 | .6 | .7 | -.3 | -.3 | .2 |
| Construction | 80.2 | 81.4 | 79.6 | 80.9 | 80.7 | 82.5 | -1.8 | 1.5 | -2.2 | 1.6 | -.2 | 2.3 | -.2 |
| Materials | 98.3 | 99.8 | 100.4 | 101.3 | 101.9 | 101.9 | -.2 | 1.5 | .7 | .8 | .6 | .0 | 5.7 |
| Major industry groups | |||||||||||||
| Manufacturing (see note below) | 97.6 | 98.6 | 98.5 | 99.4 | 99.6 | 100.5 | -.1 | 1.1 | -.1 | .9 | .2 | .9 | 4.6 |
| Previous estimates | 97.6 | 98.6 | 98.4 | 99.3 | 99.1 | -.1 | 1.0 | -.2 | .9 | -.2 | |||
| Mining | 96.7 | 98.6 | 97.6 | 99.8 | 101.5 | 103.8 | -.1 | 1.9 | -1.0 | 2.2 | 1.7 | 2.3 | 5.2 |
| Utilities | 106.7 | 104.1 | 112.0 | 112.4 | 112.4 | 105.2 | 2.6 | -2.5 | 7.6 | .4 | .0 | -6.4 | -.9 |
|
Capacity utilization |
Percent of capacity |
Capacity growth |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Average 1972- 2009 |
1988- 89 high |
1990- 91 low |
1994- 95 high |
2001- 02 low |
2009 Mar. |
||||||||
| 2009 | 2010 |
Mar. '09 to Mar. '10 |
|||||||||||
| Oct.[r] | Nov.[r] | Dec.[r] | Jan.[r] | Feb.[r] | Mar.[p] | ||||||||
| Total industry | 80.6 | 85.1 | 78.7 | 84.9 | 73.5 | 69.5 | 70.8 | 71.4 | 72.0 | 72.7 | 73.0 | 73.2 | -1.2 |
| Previous estimates | 70.8 | 71.4 | 71.8 | 72.5 | 72.7 | ||||||||
| Manufacturing (see note below) | 79.2 | 85.4 | 77.2 | 84.5 | 71.4 | 66.0 | 67.6 | 68.4 | 68.4 | 69.1 | 69.4 | 70.0 | -1.5 |
| Previous estimates | 67.6 | 68.4 | 68.4 | 69.1 | 69.0 | ||||||||
| Mining | 87.5 | 86.5 | 83.8 | 89.1 | 84.9 | 84.9 | 83.8 | 85.5 | 84.8 | 86.6 | 88.2 | 90.2 | -1.1 |
| Utilities | 86.6 | 92.8 | 84.2 | 93.3 | 84.2 | 80.8 | 80.4 | 78.3 | 84.1 | 84.2 | 84.1 | 78.6 | 1.9 |
| Stage-of-process groups | |||||||||||||
| Crude | 86.5 | 88.3 | 84.7 | 89.9 | 81.7 | 79.5 | 83.0 | 84.3 | 84.3 | 85.4 | 86.3 | 87.4 | -1.6 |
| Primary and semifinished | 81.6 | 86.5 | 77.9 | 87.9 | 74.3 | 67.1 | 67.8 | 68.2 | 69.3 | 69.7 | 70.0 | 69.5 | -1.3 |
| Finished | 77.5 | 83.0 | 77.2 | 80.3 | 70.0 | 68.2 | 69.4 | 70.0 | 70.1 | 71.2 | 71.2 | 71.8 | -.8 |
r Revised. p Preliminary.
Market Groups
The output of consumer goods declined 0.2 percent in March. However, output in the first quarter rose at an annual rate of 4.9 percent, and the index in March was 3.3 percent above its year-earlier level. In March, the production of consumer durables strengthened 2.0 percent, the output of non-energy non-durables moved up 0.2 percent, and the production of consumer energy products contracted 3.7 percent. All major categories of consumer durables advanced. For the first quarter as a whole, the index for consumer durables expanded at an annual rate of 8.8 percent, as the index was supported by a further jump in automotive products. The gain for non-energy nondurables reflected increases in foods and tobacco and in clothing, which more than offset decreases in both chemical and paper products. The index for consumer nondurable energy products was weighed down in March by the weakness in residential sales by utilities.
The index for business equipment expanded 1.4 percent in March; this index rose 13.2 percent at an annual rate for the first quarter. The quarterly gain was boosted by strength in the production of industrial and other equipment and of information processing equipment. In March, information processing equipment recorded an increase of 1.9 percent and was led by gains in the production of search and detection equipment and of measuring and controlling instruments. Transit equipment advanced 2.2 percent, but this rise followed five months of declines; the index was down 6.9 percent at an annual rate in the first quarter. Industrial and other equipment increased 0.8 percent in March and gained 16.1 percent at an annual rate in the first quarter; the advance in the first quarter was this category's largest gain since the fourth quarter of 1987.
The production of defense and space equipment rose 1.7 percent in March and climbed 8.0 percent at an annual rate for the first quarter.
Within non-industrial supplies, the output of construction supplies advanced 2.3 percent in March and increased 4.9 percent at an annual rate in the first quarter; nevertheless, the index in March was little changed from its year-earlier level. The production of business supplies fell 1.4 percent in March; apart from a drop in the sales of utilities to businesses, output edged up. For the first quarter as a whole, the production of business supplies moved up 3.8 percent at an annual rate.
The index for materials was unchanged in March; however, for the first quarter as a whole, this index rose at an annual rate of 9.2 percent. The production of durable materials increased 1.4 percent in March. All three major categories of durables expanded, with consumer parts rising 1.0 percent, equipment parts strengthening 0.8 percent, and other durable materials advancing 2.0 percent. The output of nondurable materials was unchanged, while the index for energy materials receded 1.7 percent because of the decline in utilities.
Industry Groups
Manufacturing output rose 0.9 percent in March after having edged up 0.2 percent in February. Capacity utilization for manufacturing moved up 0.6 percentage point in March to 70.0 percent, a rate 4.9 percentage points above its trough in June 2009.
The index for durable goods advanced 1.4 percent in March and rose 10.5 percent at an annual rate in the first quarter, the third consecutive quarterly increase. In March, all major categories of durables strengthened, and most categories posted gains of more than 1.0 percent. Expansions of 2.0 percent or more were recorded for computer and electronic products, for motor vehicles and parts, and for furniture and related products.
Non-durable manufacturing advanced 0.5 percent in March and increased 4.8 percent at an annual rate in the first quarter, the third straight quarterly gain. The output of petroleum and coal products jumped 3.0 percent in March, while plastics and rubber products posted an increase of 1.7 percent. The indexes for food, beverage, and tobacco products and for apparel and leather recorded more moderate gains.
In March, mining output gained 2.3 percent and capacity utilization rose to 90.2 percent, a rate 2.7 percentage points above its average for the period from 1972 to 2009. The gain in mining production mainly reflected increases in oil and gas well drilling, in stone, sand, and gravel quarrying, and in coal mining. The output of utilities fell 6.4 percent. Capacity utilization for utilities dropped 5.5 percentage points to 78.6 percent, a rate 8.0 percentage points below its average for the period from 1972 to 2009.
Capacity utilization rates in March at industries grouped by stage of process were as follows: At the crude stage, utilization increased 1.1 percentage points to 87.4 percent, a rate 0.9 percentage point above its average for the period from 1972 to 2009; at the primary and semifinished stages, utilization slipped 0.5 percentage point to 69.5 percent, a rate 12.1 percentage points below its long-run average; while at the finished stage, utilization moved up 0.6 percentage point to 71.8 percent, a rate 5.7 percentage points below its long-run average.
