U.S. Factories' Operating Rate Is Unchanged
WASHINGTON -- The operating rate at the nation's factories, mines and utilities was unchanged at 82.4% of capacity last month, the highest pace since March 1980, the Federal Reserve Board said.</br></br>The relatively high level provides another sign of the revival of the nation's manufacturing sector over the past year, partly in reponse to strong export demand. The rates for December and January were raised from 82.2%. In March 1980, the rate stood at 83.7%.</br></br>Continued increases in the operating rate are leading to fears of production bottlenecks and inflationary shortages in some industries, such as chemicals and steel, although excess capacity overseas will help curb such pressures. In addition, the unemployment rate has fallen to 5.7% of the work force, approaching a level that some economists contend will touch off inflationary pressures.</br></br>Factories operated at 82.5% last month, unchanged from January. Producers of durable goods used 80.1% of capacity in February, the same as in January, while producers of nondurable goods used 85.9%, down from 86.1%. The motor vehicles and parts industry used 77%, down from 77.4%.</br></br>The rate fell to 80.6% from 81.1% for the mining industry and rose to 82.2% from 81.7% for utilities. Producers of industrial materials operated at 83.1%, down from 83.4%. The Fed said that declines were widespread among materials producers, but that makers of non-durable-goods materials continue to operate at close to recent peaks.