Source: Federal Reserve Board of Governors via FRED
Data through: September 2026 · updated Oct 16 · Updates: Monthly · Next: Nov 17
MThe three bars show the last 3 months for this indicator, oldest left to newest right. Bar height reflects each reading relative to the other two — the tallest is the highest of the three, the shortest the lowest.
Historical context: Currently in the 25th percentile of all historical readings.
What this means right now: Utilization is between 75% and 78% — some slack, below the 79.8% average since 1967. About 1 month in 4 has read here (191 of 717).
Capacity Utilization · Monthly · 1967–2026
NBER recessions
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Monthly values
Capacity Utilization — the last 12 months
Every month's reading, with the band the heatmap gives it. The chart above shows the same series in full.
Month
Value
Band
Sep 2026
76.9%
Within normal range
Aug 2026
76.4%
Within normal range
Jul 2026
76.4%
Within normal range
Jun 2026
76.3%
Within normal range
May 2026
76.2%
Within normal range
Apr 2026
76.2%
Within normal range
Month-end readings of the same series the chart shows, from capacity_utilization. Values are the current record, not point-in-time: a month that has since been revised shows its revised value.
What is the Capacity Utilization?
Capacity utilization measures the percentage of the US industrial capacity that is currently being used. It covers manufacturing, mining, and utilities.
Above 80%, factories are running close to full capacity, and consumer inflation a year later has run higher: a median 4.1% after months at 80% or above since 1967, against 2.7% after other months. In recessions utilization falls, but not always far. In five of the eight recessions since 1967 it dropped below 75% (1975, 1982, 2001, 2009 and 2020), while the 1970, 1980 and 1990–91 recessions bottomed between 77.8% and 78.8%.
How We Color-Code the Capacity Utilization
Our heatmap colors this indicator against historically significant thresholds:
Below 72.0%
Deep slack — below 72%, rare: 23 months since 1967, every one inside a recession or within ten months of its end (1982–83, 2008–10 and 2020)
72.0% – 75.0%
Weak demand — between 72% and 75%, about 1 month in 16 since 1967 (44 of 717), 14 of them inside a recession
75.0% – 78.0%
Some slack — between 75% and 78%, about 1 month in 4 since 1967 (191 of 717); the reading today
78.0% – 80.0%
Healthy — between 78% and 80%, about 1 month in 6 since 1967 (117 of 717); last seen in November 2022
Above 80.0%
Near full capacity — 80% or above, about 5 in 10 of all months since 1967 (342 of 717) but none since April 2008. Consumer inflation a year later ran a median 4.1% after these months, against 2.7% after the rest
Historical Extremes — What Happened Next?
When this indicator reaches extreme levels, history shows consistent patterns:
Apr 2020COVID shutdown
64.1%
The lowest reading since the series began in 1967, as factories shut in the first weeks of the pandemic.
Jan 1989Late-cycle boom
85.2%
The late-1980s peak, a year and a half before the recession that began in August 1990. The record's highs came earlier: 89.4% in January 1967 and 88.8% in early 1973.
Jun 2009GFC trough
66.5%
The lowest reading on the record when it was published, in July 2009. Only April and May 2020 have gone lower since.
Frequently Asked Questions
What is the "normal" level of capacity utilization?
The average since 1967 is just under 80%. About 4 months in 5 have fallen between 75% and 85% (574 of 717). The rate has not reached 80% since April 2008. The US has never sustained utilization above 90% — there is always idle capacity for maintenance, retooling and a buffer. Below 75% has been uncommon: about 1 month in 11 since 1967 (67 of 717).
Why does 80% signal inflation?
Above 80%, factories are near their practical maximum, so extra demand is met with higher prices more than with more output. On the site's data, consumer inflation a year after months at 80% or above ran a median 4.1% since 1967, against 2.7% after other months.
What capacity utilization rate has historically preceded an upturn in business capital investment?
Capital goods orders have grown faster after high utilization. Since 1992, core capital goods orders were higher a year after about 4 in 5 of the months at 80% or above (113 of 143), with a median rise of 5.5%. After months below 80% they were higher about 3 times in 5 (158 of 260), with a median rise of 2.8%. Crossings above 80% since 1992: 1, in January 2005, after which orders were 7.9% higher a year later. 80% is the ladder's line, not a rule the record proves. Long periods below 75% have come with slow rebuilding of orders, though not always. After 2001–02 orders took until January 2008 to regain their prior peak, and after 2008–10 until February 2012; after 2020 they were back by April 2021.
How does capacity utilization factor into the Federal Reserve's inflation assessment?
High utilization means factories are near their limits, so extra demand tends to lift prices rather than output; it is one of the measures of slack the Fed publishes. During the 2021–2022 inflation surge, utilization rose to 79.0% in April 2022 — its highest since January 2019, but short of 80%.
What is the difference between total capacity utilization and the manufacturing-only rate?
The total rate (TCU, the one shown here) blends manufacturing, mining and utilities. The Fed publishes a manufacturing-only rate in the same G.17 release; this site does not hold it, so it makes no comparison between the two.