Year
Time Utilization Rate of Capital St ock All Manufacturing (in percent)
1972
61.7 62..5 63.2 63.5 60.2 57.5. 53.8 51.2 47.9
197.3 1974 1975 1976 1977 1978 1979 1980
These estimates are revealing in two respects. They indicate that the time utilization rate rose durin?_the commodity boom of 1972-1975, but only modestly, peaking at 63.5 percent in 1975. Thereafter, the decline was sharp and consistently downward, falling under 50 percent in 1980. Consideringthe precipitous fall in industrial production between 1980-1984, we estimate the time utilization rate at between 30 and 35 percent by 1985, and probably closer to 30 percent. This easily puts it at the lowest level compared to any other year since 1950.
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