Currently, the base year is 1987. The data is typically expressed as an increase or decrease from the prior month. Capacity utilization , released at the same time, measures the extent to which the nation's capital is being used in the production of goods. The utilization rate rises and falls with business cycles. As production increases, capacity utilization rises.
Economists closely watch capacity utilization for signs of inflation pressures.
The slower the production pace, the better the bond market likes it. Conversely, a strong production and capacity utilization report leads to a market sell-off. The Mortgage Mart is sponsored by Irwin Mortgage Copyright 1995-98, The Mortgage Mart.