Manufacturers Alliance/MAPI: 'Worst Industrial Recession' In 20 Years

ByJohn S. McClenahen U.S. industrial production -- the output of the nation's manufacturers, mines and utilities -- fell 0.3% in November, according to figures released Dec. 14 by the Federal Reserve System. Manufacturing output declined 0.2% and, except for a 6.4% increase in the production of motor vehicles and their parts, would have dropped 0.7%. Manufacturing output fell 0.9% in both September and October of this year. "The latest industrial production figures confirm that this is the worst industrial recession since 1981-82," states Thomas J. Duesterberg, president and CEO of the Manufacturers Alliance/MAPI, an Arlington, Va.-based research group. U.S. factories operated at just 73% of their capacity in November, down a significant 6.2 percentage points from their November 2000 level and an even larger 8.1 percentage points below the average capacity utilization rate for the years 1967-2000.