Industrial Production and Capacity Utilization for September 1998

Federal Reserve Bulletin, November 1998 | Go to article overview

Industrial Production and Capacity Utilization for September 1998


Released for publication October 16

Industrial production, which had rebounded 1.6 percent in August after settlement of the strikes at key General Motors parts plants, declined 0.3 percent in September. The declines were widespread in durable manufacturing, with larger drops in steel and motor vehicles and parts. Excluding the output of motor vehicles and parts, the index of industrial production edged down 0.1 percent for a second month. At 128.7 percent of its 1992 average, industrial production in September was 2.4 percent higher than it was in September 1997. Capacity utilization fell 0.5 percentage point in September, to 81.1 percent, 1.0 percentage point below its 1967-97 average.

For the third quarter, industrial output was unchanged after having risen at an annual rate of 1.7 percent in the second quarter. The deceleration was evident in manufacturing: The increase in the production of durable goods dropped back 0.6 percentage point, to an annual rate of 1.9 percent, while the output of nondurable manufacturing fell more rapidly, declining at an annual rate of 3.5 percent in the third quarter. In both quarters, double-digit gains in output at utilities boosted overall growth; utility output was low in the first quarter, when unusually mild temperatures prevailed, but was high in the third quarter, when temperatures nationwide were quite hot. In contrast, mining, particularly metal mining and oil and gas extraction, declined in both the second and third quarters.

MARKET GROUPS

The output of consumer goods declined 0.4 percent in September. The production of automotive products, which had jumped nearly 33 percent in August, eased 2.6 percent. The output of other durable goods, particularly household appliances, fell for a second month. The production of nondurable consumer goods edged down further in September after having declined 0.6 percent in August. Sales of residential electricity, which had boosted the index for consumer nondurables earlier in the year, have continued to advance in recent months; output levels for food and tobacco, clothing, and chemical products have declined this quarter.

The production of business equipment fell 0.6 percent in September largely because of drops in the output of industrial and transit equipment. The production of trucks and construction equipment, which had been very strong in August, eased in September. Gains in the output of computers failed to offset decreases in the production of other information processing and related equipment, such as photographic equipment and telephone apparatus. The index for other types of business equipment recouped more than half of the August drop of 8 percent, which came from a slash in the output of farm machinery.

The output of construction supplies fell 0.7 percent, after having risen 1.6 percent in the preceding two months. Reflecting the active housing market, this index has moved to 6.0 percent above its level of last September. The production of materials, which had risen 1.4 percent in August, was unchanged in September. The indexes for durable and nondurable goods materials declined 0.3 percent, while the output of energy materials rebounded 0.9 percent.

INDUSTRY GROUPS

Manufacturing output fell 0.4 percent in September after the August jump of 1.8 percent, which came from a rebound in the production of motor vehicles and parts to above the pre-strike level. Excluding motor vehicles and parts, factory output dropped 0.1 percent in August and 0.3 percent in September. Other notable declines in durable manufacturing in September were in the iron and steel and lumber industries. The production of steel fell 4.4 percent and stood more than 9 percent below the high in the first quarter; the weakness in steel reflects an influx of imports in recent months. Among other major durable manufacturing industries, the output of computers and semiconductors rose more than 1 percentage point. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Industrial Production and Capacity Utilization for September 1998
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.