Capacity Utilization
Capacity utilization is the percentage of the nation's industrial productive capacity (manufacturing, mining, utilities) that is actually in use. The long-run average sits around 80%; readings well below signal slack, readings near or above the average signal a tight, fully employed industrial base.
Capacity utilization
Next release: Nov 17, 2026
Latest reading
As of September 2026, Capacity Use (Capacity utilization) stands at 76.9% — up from 76.4% the prior reading, 12.5 pp below the January 1967 record of 89.4%. High utilization (mid-to-high 70s and rising) supports pricing power and capital spending but, when it runs hot, can stoke cost and inflation pressure that squeezes margins. Falling utilization signals slack and disinflation, and sharp drops mark recessions. It is a coincident-to-leading read on the industrial side of the margin story. Series history runs from 1967 to present.
Sources, methodology & freshnessFederal Reserve G.17 via FRED (TCU), monthly, seasonally adjusted · Monthly, with every releaseData as of 2026-09-01 · Open ↓Close ↑
Full history
Methodology & data
Capacity Use is sourced from Fed via the Federal Reserve's FRED service (Federal Reserve G.17 via FRED (TCU), monthly, seasonally adjusted). We pull the complete history, chart it on a monthly basis, overlay SPY for context, and generate a dated plain-English reading from the latest release — with no smoothing or adjustment beyond what the chart legend states.
Every reading is stamped with its release date. Latest observation 2026-09-01; site refreshed 2026-10-19. Maintained and reviewed by Yuriy Matso; see our methodology for the standards every series on the site is held to.
Frequently asked questions
What is the Capacity Utilization?
Capacity utilization is the percentage of the nation's industrial productive capacity (manufacturing, mining, utilities) that is actually in use. The long-run average sits around 80%; readings well below signal slack, readings near or above the average signal a tight, fully employed industrial base.
How do you read Capacity Use?
High utilization (mid-to-high 70s and rising) supports pricing power and capital spending but, when it runs hot, can stoke cost and inflation pressure that squeezes margins. Falling utilization signals slack and disinflation, and sharp drops mark recessions. It is a coincident-to-leading read on the industrial side of the margin story.
Where does the Capacity Use data come from?
Federal Reserve G.17 via FRED (TCU), monthly, seasonally adjusted. We chart the full history and publish a dated, plain-English reading with every release; the raw series is downloadable as CSV at /data/indicators/capacity-utilization.csv.
How often is Capacity Use updated?
Capacity Use is a monthly series from Fed, refreshed here as soon as a new release posts to FRED.
Capacity utilization
Next release: Nov 17, 2026