United States Capacity Utilization

Info

History

Chart

Impact:

Low

Source: Federal Reserve

Latest Release:

Date:

Surprise:

-0.1%

Actual:

77.7%

Forecast: 77.8%

Previous/Revision:

77.8%

Period: Apr

Next Release:

Date:

Period: May

What Does It Measure?

Capacity utilization measures the extent to which an organization or economy utilizes its potential output, specifically assessing the efficiency in production relative to the highest level of output achievable under normal conditions. It focuses on key areas such as manufacturing, mining, and utilities, providing insights into production capacity, employment levels, and inflation pressures, with a key benchmark indicating that levels above 80% typically signal economic expansion while levels below that suggest contraction; it is primarily a national economic indicator for the United States.

Frequency

The Capacity Utilization report is released monthly, with the data typically published on the third or fourth business day of the following month, providing both preliminary and revised figures.

Why Do Traders Care?

Traders regard capacity utilization as a critical indicator, as higher-than-expected levels often signal strong economic conditions and increased industrial production, positively influencing equity markets and the U.S. dollar. Conversely, lower readings could indicate weakness in the manufacturing sector, potentially leading to bearish sentiment for stocks and the currency due to anticipated lower economic growth.

What Is It Derived From?

Capacity utilization is derived from data collected by the Federal Reserve, which surveys industrial production figures, including output levels across various sectors, and compares them to defined capacity levels. This calculation involves assessing actual production against theoretical maximum production, typically employing diffusion indexes to gauge shifts in manufacturing and industrial activity.

Description

The Capacity Utilization report provides a snapshot of how fully the nation’s manufacturing, mining, and utilities sectors are operating, indicating economic health and production efficiency. The data holds significant relevance, as it highlights potential inflationary pressures when utilization is high, suggesting demand may be outpacing supply, prompting businesses and policymakers to adjust accordingly.

Additional Notes

Capacity utilization is often considered a coincident economic indicator, reflecting current economic conditions and potentially correlating with unemployment rates and GDP growth. This measure also serves as a barometer for planning future production and capital investment, influencing both domestic and foreign economic policies as it's reflective of global trends in manufacturing and industry.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for USD, Bullish for Stocks. Lower than expected: Bearish for USD, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
May 15, 2025	77.7%	77.8%	77.8%	-0.1%
Apr 16, 2025	77.8%	78%	78.2%	-0.2%
Mar 18, 2025	78.2%	77.8%	77.7%	0.4%
Feb 14, 2025	77.8%	77.7%	77.5%	0.1%
Jan 17, 2025	77.6%	77%	77%	0.6%
Dec 17, 2024	76.8%	77.3%	77%	-0.5%
Nov 15, 2024	77.1%	77.2%	77.4%	-0.1%
Oct 17, 2024	77.5%	77.8%	77.8%	-0.3%
Sep 17, 2024	78%	77.9%	77.4%	0.1%
Aug 15, 2024	77.8%	78.5%	78.4%	-0.7%
Jul 17, 2024	78.8%	78.4%	78.3%	0.4%
Jun 18, 2024	78.7%	78.6%	78.2%	0.1%
May 16, 2024	78.4%	78.4%	78.5%
Apr 16, 2024	78.4%	78.5%	78.2%	-0.1%
Mar 15, 2024	78.3%	78.5%	78.3%	-0.2%
Feb 15, 2024	78.5%	78.8%	78.7%	-0.3%
Jan 17, 2024	78.6%	78.7%	78.6%	-0.1%
Dec 15, 2023	78.8%	79.1%	78.7%	-0.3%
Nov 16, 2023	78.9%	79.4%	79.5%	-0.5%
Oct 17, 2023	79.7%	79.6%	79.5%	0.1%
Sep 15, 2023	79.7%	79.3%	79.5%	0.4%
Aug 16, 2023	79.3%	79.1%	78.6%	0.2%
Jul 18, 2023	78.9%	79.5%	79.4%	-0.6%
Jun 15, 2023	79.6%	79.7%	79.8%	-0.1%
May 16, 2023	79.7%	79.7%	79.4%
Apr 14, 2023	79.8%	79%	79.6%	0.8%
Mar 17, 2023	78%	78.4%	78%	-0.4%
Feb 15, 2023	78.3%	79%	78.4%	-0.7%
Jan 18, 2023	78.8%	79.6%	79.4%	-0.8%
Dec 15, 2022	79.7%	79.8%	79.9%	-0.1%
Nov 16, 2022	79.9%	80.4%	80.1%	-0.5%
Oct 18, 2022	80.3%	80%	80.1%	0.3%
Sep 15, 2022	80%	80.3%	80.2%	-0.3%
Aug 16, 2022	80.3%	80.1%	79.9%	0.2%
Jul 15, 2022	80%	80.6%	80.3%	-0.6%
Jun 17, 2022	79%	79.2%	78.9%	-0.2%
May 17, 2022	79%	78.6%	78.2%	0.4%
Apr 15, 2022	78.3%	77.8%	77.7%	0.5%
Mar 17, 2022	77.6%	77.8%	77.3%	-0.2%
Feb 16, 2022	77.6%	76.8%	76.6%	0.8%
Jan 14, 2022	76.5%	77%	76.6%	-0.5%
Dec 16, 2021	76.8%	76.8%	76.5%
Nov 16, 2021	76.4%	75.8%	75.2%	0.6%
Oct 18, 2021	75.2%	76.5%	76.2%	-1.3%
Sep 15, 2021	76.4%	76.4%	76.2%
Aug 17, 2021	76.1%	75.7%	75.4%	0.4%
Jul 15, 2021	75.4%	75.6%	75.1%	-0.2%
Jun 15, 2021	75.2%	75.1%	74.6%	0.1%
May 14, 2021	74.9%	75%	74.4%	-0.1%
Apr 15, 2021	74.4%	75.7%	73.4%	-1.3%
Mar 16, 2021	73.8%	75.5%	75.5%	-1.7%
Feb 17, 2021	75.6%	74.8%	74.9%	0.8%
Jan 15, 2021	74.5%	73.6%	73.4%	0.9%
Dec 15, 2020	73.3%	72.9%	73%	0.4%
Nov 17, 2020	72.8%	72.3%	72%	0.5%
Oct 16, 2020	71.5%	71.9%	72%	-0.4%
Sep 15, 2020	71.4%	71.4%	71.1%
Aug 14, 2020	70.6%	70.3%	68.5%	0.3%
Jul 15, 2020	68.6%	67.7%	65.1%	0.9%
Jun 16, 2020	64.8%	66.9%	64%	-2.1%
May 15, 2020	64.9%	64%	73.2%	0.9%
Apr 15, 2020	72.7%	73.8%	77%	-1.1%
Mar 17, 2020	77%	77.1%	76.6%	-0.1%
Feb 14, 2020	76.8%	76.8%	77.1%
Jan 17, 2020	77%	77.1%	77.4%	-0.1%
Dec 17, 2019	77.3%	77.4%	76.6%	-0.1%
Nov 15, 2019	76.7%	77.1%	77.5%	-0.4%
Oct 17, 2019	77.5%	77.7%	77.9%	-0.2%
Sep 17, 2019	77.9%	77.6%	77.5%	0.3%
Aug 15, 2019	77.5%	77.8%	77.8%	-0.3%
Jul 16, 2019	77.9%	78.1%	78.1%	-0.2%
Jun 14, 2019	78.1%	78%	77.9%	0.1%
May 15, 2019	77.9%	78.7%	78.5%	-0.8%
Apr 16, 2019	78.8%	79.1%	79%	-0.3%
Mar 15, 2019	78.2%	78.4%	78.3%	-0.2%
Feb 15, 2019	78.2%	78.7%	78.8%	-0.5%
Jan 18, 2019	78.7%	78.5%	78.6%	0.2%
Dec 14, 2018	78.5%	78.6%	78.1%	-0.1%
Nov 16, 2018	78.4%	78.2%	78.5%	0.2%
Oct 16, 2018	78.1%	78.2%	78.1%	-0.1%
Sep 14, 2018	78.1%	78.3%	77.9%	-0.2%
Aug 15, 2018	78.1%	78.2%	78.1%	-0.1%
Jul 17, 2018	78%	78.3%	77.7%	-0.3%
Jun 15, 2018	77.9%	78.1%	78.1%	-0.2%
May 16, 2018	78%	78.4%	77.6%	-0.4%
Apr 17, 2018	78%	77.9%	77.7%	0.1%
Mar 16, 2018	78.1%	77.7%	77.4%	0.4%
Feb 15, 2018	77.5%	78%	77.7%	-0.5%
Jan 17, 2018	77.9%	77.3%	77.2%	0.6%
Dec 15, 2017	77.1%	77.2%	77%	-0.1%
Nov 16, 2017	77%	76.3%	76.4%	0.7%
Oct 17, 2017	76%	76.2%	75.8%	-0.2%
Sep 15, 2017	76.1%	76.8%	76.9%	-0.7%
Aug 17, 2017	76.7%	76.7%	76.7%
Jul 14, 2017	76.6%	76.7%	76.4%	-0.1%
Jun 15, 2017	76.6%	76.7%	76.7%	-0.1%
May 16, 2017	76.7%	76.3%	76.1%	0.4%
Apr 18, 2017	76.1%	76.2%	75.7%	-0.1%
Mar 17, 2017	75.4%	75.5%	75.5%	-0.1%
Feb 15, 2017	75.3%	75.5%	75.6%	-0.2%
Jan 18, 2017	75.5%	75.4%	74.9%	0.1%
Dec 14, 2016	75%	75.1%	75.4%	-0.1%
Nov 16, 2016	75.3%	75.5%	75.4%	-0.2%
Oct 17, 2016	75.4%	75.6%	75.3%	-0.2%
Sep 15, 2016	75.5%	75.7%	75.9%	-0.2%
Aug 16, 2016	75.9%	75.6%	75.4%	0.3%
Jul 15, 2016	75.4%	75%	74.9%	0.4%
Jun 15, 2016	74.9%	75.2%	75.3%	-0.3%
May 17, 2016	75.4%	75%	74.9%	0.4%
Apr 15, 2016	74.8%	75.4%	75.3%	-0.6%
Mar 16, 2016	76.7%	76.9%	77.1%	-0.2%
Feb 17, 2016	77.1%	76.7%	76.4%	0.4%
Jan 15, 2016	76.5%	76.8%	76.9%	-0.3%
Dec 16, 2015	77%	77.4%	77.5%	-0.4%
Nov 17, 2015	77.5%	77.5%	77.7%
Oct 16, 2015	77.5%	77.4%	77.8%	0.1%
Sep 15, 2015	77.6%	77.8%	78%	-0.2%
Aug 14, 2015	78%	78%	77.7%
Jul 15, 2015	78.4%	78.1%	78.2%	0.3%
Jun 15, 2015	78.1%	78.3%	78.3%	-0.2%
May 15, 2015	78.2%	78.4%	78.6%	-0.2%