was below full capacity in a particular quarter and the reasons for any shortfalls ( figure 4 ). these data show a decline over the past year in the number of plants that continue to operate below full capacity due to logistical challenges as well as parts or labor shortages. 3 yet those readings remained quite elevated in the third quarter of last year relative to rates observed before the pandemic. see lisa d. cook ( 2022 ), “ the economic outlook and u. s. productivity, ” speech delivered at the detroit economic club, detroit, michigan, november 30, https : / / www. federalreserve. gov / newsevents / speech / cook20221130a. htm. for information on the checkbox data from the quarterly survey of plant capacity utilization, see jessica stahl and norman morin ( 2013 ), “ looking for shortages of skilled labor in the manufacturing sector, ” feds notes ( washington : board of governors of the federal reserve system, september 26 ), https : / / www. federalreserve. gov / econresdata / notes / feds - notes / 2013 / looking - for - shortages - of - skilled - laborin - the - manufacturing - sector - 20130926. html ; and justin pierce and emily wisniewski ( 2018 ), “ some characteristics of the decline in manufacturing capacity utilization, ” feds notes ( washington : board of governors of the federal reserve system, march 1 ), https : / / www. federalreserve. gov / econres / notes / fedsnotes / some - characteristics - of - the - decline - in - manufacturing - capacity - utilization - 20180301. html. - 4turning to housing, a sector in which demand has been quite strong since the onset of the pandemic, the housing services component of core pce has continued to register rapid increases. however, the housing services index tends to adjust quite slowly, as it measures the rise in rents for all tenants, including those with continuing leases, and the rise in the rental - equivalent cost of owner - occupied housing. changes in the rental market are reflected in measures of average rents with a lag. partly for this reason, i find it useful to consult market rents paid for new leases, which are a more timely indicator of how housing services prices are likely to change over the next 6 to 12 months ( figure 5 ). available measures of market rents

period. international accounting the fsap also contemplates mandating adherence to international accounting standards. currently, banking organizations in the european union may prepare their annual financial statements in accordance with the accounting standards of the international accounting standards board ( iasb ), u. s. generally accepted accounting principles ( u. s. gaap ), and / or national standards. the use of u. s. gaap is usually limited to those banking organizations or other companies whose securities are publicly traded on u. s. stock exchanges and are registered with the securities and exchange commission. in many cases, these companies will also provide separate financial statements based on their national accounting standards and disclosure rules. the european union will require all eu companies listed on eu exchanges that are currently following national standards to follow iasb standards by 2005 and will require those eu companies that currently follow u. s. gaap to adopt iasb standards by 2007. the eu is also working to adopt international auditing standards for external audits of eu companies, including banks. the iasb is now independent of the international accounting profession and independently funded. it has adopted many of the structural elements of the fasb in the united states, which are intended to promote an independent, objective standards - setting environment. many senior american accounting experts serve on the iasb and its staff. iasb gaap has many similarities with u. s. gaap and the iasb issued extensive enhancements to its standards last year and this year, with additional improvements also issued as a proposal this year. for example, in recent months the iasb issued major revisions to its standards for financial instruments, which are similar to u. s. gaap and cover many areas of banking activities. one aspect of these revisions by the iasb significantly improved the guidance on loan loss allowances in ways that could lead to better bank reserving practices around the world. the federal reserve has long supported sound accounting policies and meaningful public disclosure by banking and financial organizations with the objective of improving market discipline and fostering stable financial markets. the concept of market discipline is assuming greater importance among international banking supervisors as well. basel ii seeks to strengthen the market ’ s ability to aid bank supervisors in evaluating banking organizations ’ risks and assessing capital adequacy. it consists of three pillars, or tools : a minimum risk - based capital requirement ( pillar i ), risk - based supervision ( pillar ii ), and disclosure of risks and capital adequacy to enhance market discipline