Risk and sentiment
US Capacity Utilization
The share of sustainable US industrial capacity actually in use. Rising utilization means less slack, which typically arrives with building price pressure and stronger demand for capital investment.
At a glance
US Capacity Utilization: latest value and prior change
As of 2026-07-01, US Capacity Utilization is 76.29 %. It is 0.08 pp higher than 76.20 % on 2026-06-01.
Across 679 available observations from 1970-01-01 to 2026-07-01, the latest value is at the tie-adjusted 21st percentile.
- Observed on
- Default comparison window
- 1970-01-01–2026-07-01
- Observations · observed cadence
- 679 · Monthly
- Data source
- FRED
A high or low percentile does not by itself make the indicator positive, negative, or a buy or sell signal.
Time-series chart
US Capacity Utilization
1970-01-01–2026-07-01
Long-history series are stored as real provider observations. Index, FX, VIX, and ratio charts use historical backfill where providers expose it; Korean investor flow and margin-credit feeds expand as stable historical endpoints become available.
Recent observations and calculated changes
The ten latest chart observations. Change subtracts the previous observation; intervals vary with holidays, release schedules and missing data. A difference in rates or ratios is not an investment return.
| Observed | Value | Previous date | Difference (current − previous) |
|---|---|---|---|
| 2026-07-01 | 76.29 % | 2026-06-01 | 0.08 %p |
| 2026-06-01 | 76.20 % | 2026-05-01 | 0.14 %p |
| 2026-05-01 | 76.06 % | 2026-04-01 | -0.07 %p |
| 2026-04-01 | 76.14 % | 2026-03-01 | 0.50 %p |
| 2026-03-01 | 75.63 % | 2026-02-01 | -0.18 %p |
| 2026-02-01 | 75.81 % | 2026-01-01 | 0.57 %p |
| 2026-01-01 | 75.24 % | 2025-12-01 | -0.40 %p |
| 2025-12-01 | 75.64 % | 2025-11-01 | 0.25 %p |
| 2025-11-01 | 75.39 % | 2025-10-01 | -0.23 %p |
| 2025-10-01 | 75.62 % | 2025-09-01 | -0.43 %p |
Source: FRED
Interpretation guide
US Capacity Utilization: one gauge for inflation pressure and the capex cycle
US Capacity Utilization, published monthly by the Federal Reserve, measures what share of sustainable US industrial capacity is actually in use. Because it captures how hard the factory base is running, it occupies a unique spot: it hints at inflation pressure and the corporate capex cycle at the same time.
What the number says
High utilization means little spare capacity, which cuts two ways: supply gets tight enough to support price increases, and firms start weighing investment in new capacity to keep up.
- The long-run average is commonly discussed near 80%, a zone that reads as rough supply-demand balance.
- Sustained readings above 80% raise the odds of bottlenecks, inflation pressure, and a capex upswing together.
- Readings below the mid-70s imply substantial idle capacity — a disinflationary, investment-suppressing backdrop.
Direction and speed
The direction of change matters as much as the level. Historically, the moment utilization rolls over from a peak has often coincided with the manufacturing cycle passing its top.
- Rising utilization confirmed by improving Industrial Production YoY strengthens the expansion case.
- If output grows but utilization stays flat, capacity itself has expanded — that is not overheating.
- Several consecutive months of falling utilization signal weakening incentives for new investment.
Misreadings to avoid
Capacity estimates are revised after the fact, so decimal-point differences carry little meaning. The series' central level has also drifted lower over decades as the US economy's structure changed.
- Judge the reading against its position within the recent cycle, not against peaks from decades ago.
- Combine it with US Industrial Production YoY and US PCE Inflation YoY on TapeFlow to separate overheating from normal expansion.
- When utilization is confirmed rising, review the beneficiary path for Korean capital-goods exporters in machinery and materials.