Nondurables were flat in March. 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 industrial production index, released at the same time, measures the physical volume of output of the nation's manufacturing sector, including factories, mines, and utilities. They are not covered by this report. The index is expressed as a percentage of production in a base year. Currently, the base year is 1987. The data is typically expressed as an increase or decrease from the prior month.