Capacity Utilisation

Definition: Capacity Utilisation measures the extent to which a nation uses its installed productive capacity.

Description: The capacity utilisation report shows the relationship between actual output and potential output in US industry. If market demand grows, utilisation will increase accordingly. The optimal value for this indicator is 81.5. A lower value signals economic slowdown, whereas a value higher than 85 leads to the risk of inflation through bottlenecks and the limited delivery of goods.

Influence: When CU approaches 85, it is treated as a signal of possible inflation and may lead to a decline on the US dollar.

Market Impact: Low

Released: Released in the middle of each month, at 14:15 GMT (together with the Industrial Production Index)

Source: The Federal Reserve