The unemployment rate, at 5 percent in the second half of 2005, was down about 1 1/4 percentage points from its recent peak in early 2003 and at its lowest level in four years. Meanwhile, the factory operating rate--a measure of resource utilization in the manufacturing sector--was 79.6 percent in December, a rate that is approaching its 1972-2004 average of 79.8 percent.
Within manufacturing, industries operating at utilization rates above their long-run averages include plastics and rubber products, iron and steel products, machinery, electronic products (excluding computers), and electrical equipment, appliances, and components.