Capacity Utilization is an indicator that measures to which extent the potential levels of output are being met in the national economy. This indicator can be obtained by dividing the potential output level by the actual production. It covers all enterprises located in one particular country. Higher readings correspond to the periods of growing demand. Low readings, in turn, signify a decline in consumption. When capacity utilization is over 82% (sometimes 85%) price inflation can be expected to increase.
United States Capacity Utilization
In May 2017 capacity utilization in the United States was equal to 76.6%. The indicator averaged 80.35 percent for the period between 1967 and 2017. An all-time high reading of 89.4% has been achieved in January 1967. A record low level of capacity utilization of 66.7% has been witnessed in June 2009.
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