U.S. Manufacturing Capacity Utilization
U.S. Manufacturing Capacity Utilization: Manufacturing capacity utilization (MCU) scored a 66.8% in June, up 7.3% month on month (m/m) – its second monthly increase since April. On a year on year (y/y) comparison, the MCU was a modest -11.7%.
Figure 1 charts capacity utilization from 2009 to present. The MCU index is not currently in the green zone which is considered ideal. After a long run at the bottom of the “Recession Zone”, the index has begun to move higher scoring its second month in a row above 65%.
At Gerdau we regularly monitor the manufacturing capacity utilization date issued by the Federal Reserve because it provides excellent insight into the health of US manufacturing activity. We know that when manufacturing is performing well, so are steel sales and want to keep you our valued customers and readers informed.