Production and business activity

Economic Indicators, March, 2005

INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION

Industrial production and capacity utilization rose in February.

[GRAPHICS OMITTED]

[Monthly data seasonally adjusted]

                                                    Industry
                       Total industrial            production
                        production (1)              indexes,
                                                    1997=100

                             Percent change (2)   Manufacturing

                              From       From
    Period        Index,    preceding    year       Total (1)
                 1997=100     month     earlier

1995               89.4        ...        4.8          88.1
1996               93.2        ...        4.3          92.2
1997              100.0        ...        7.3         100.0
1998              105.8        ...        5.8         106.6
1999              110.6        ...        4.5         112.2
2000              115.4        ...        4.3         117.3
2001              111.3        ...       -3.6         112.3
2002              111.0        ...        -.3         111.9
2003              110.9        ...         .0         111.9
2004              115.5        ...        4.1         117.2

2004: Feb         114.4        1.1        3.1         115.5
      Mar         114.1        -.3        3.2         115.6
      Apr         114.7         .5        4.7         116.4
      May         115.5         .7        5.4         117.1
      June        115.1        -.4        4.7         116.9
      July        115.9         .7        4.8         117.8
      Aug         116.0         .1        5.0         118.3
      Sept        115.7        -.3        3.9         117.7
      Oct         116.6         .8        4.6         119.0
      Nov (r)     116.9         .3        3.8         119.1
      Dec (r)     117.9         .8        4.4         119.7

2005: Jan (r)     118.0         .1        4.2         120.3
      Feb (p)     118.4         .3        3.5         120.9

                    Industry production indexes, 1997=100

                              Manufacturing

                                           Other
    Period       Durable   Nondurable   (non-NAICS)   Mining
                                            (1)

1995               82.1       96.2          93.0       96.7
1996               89.1       96.4          92.3       98.3
1997              100.0      100.0         100.0      100.0
1998              110.5      101.5         106.5       98.5
1999              120.1      102.2         109.9       93.6
2000              129.4      102.8         112.2       95.8
2001              123.1       99.4         105.7       96.7
2002              122.8       99.6         100.5       92.6
2003              124.4       98.1          99.5       92.2
2004              133.0      100.1         103.4       91.4

2004: Feb         130.7       98.9         102.9       92.1
      Mar         130.8       99.1         102.6       92.1
      Apr         131.6       99.8         103.4       92.2
      May         132.4      100.3         104.5       91.6
      June        132.3      100.2         103.5       91.2
      July        133.7      100.7         104.0       92.3
      Aug         134.4      100.7         105.9       91.9
      Sept        134.1      100.2         104.0       89.4
      Oct         135.7      101.2         103.8       89.0
      Nov (r)     135.9      101.2         104.4       90.6
      Dec (r)     136.9      101.3         105.9       91.6

2005: Jan (r)     137.6      101.7         107.5       91.7
      Feb (p)     139.0      101.8         106.1       91.8

                   Industry      Capacity utilization
                  production           rate
                   indexes,       (output as percent
                   1997=100       of capacity) (1)

                                 Total         Total
    Period        Utilities     industry   manufacturing

1995                 97.2          83.7        82.8
1996                100.0          82.7        81.4
1997                100.0          83.7        82.8
1998                102.6          82.9        81.8
1999                105.5          82.2        81.1
2000                108.6          82.0        80.6
2001                108.1          76.6        74.5
2002                111.4          75.3        73.5
2003                111.9          75.5        73.7
2004            (r) 114.8      (r) 78.1        76.7

2004: Feb           117.7          77.7        75.9
      Mar           113.1          77.4        75.9
      Apr           113.3          77.7        76.3
      May           116.2          78.2        76.7
      June          113.8          77.8        76.5
      July          113.3          78.3        77.0
      Aug           111.1          78.3        77.2
      Sept          114.8          78.0        76.8
      Oct           114.3          78.5        77.5
      Nov (r)       114.9          78.7        77.5
      Dec (r)       117.7          79.2        77.9

2005: Jan (r)       114.4          79.2        78.2
      Feb (p)       113.2          79.4        78.5

(1) Total industry and total manufacturing series include
manufacturing as defined in the North American Industry
Classification System (NAICS) plus those industries--logging
and newspaper, periodical, book and directory-publishing--that
have traditionally been included in manufacturing.

(2) Percent changes based on unrounded indexes.

NOTE.--Data based on the North American Industry Classification
System (NAICS) except series as defined in footnote 1.

Source: Board of Governors of the Federal Reserve System.