U.S. Manufacturing Capacity Utilization: Manufacturing capacity utilization (MCU) was 72.3% in February 2021, down 3.8% month on month (m/m). On a year on year (y/y) comparison, the MCU was a modest -3.8%.

Figure 1 charts capacity utilization from 2010 to present. The MCU is not currently in the green zone which is considered ideal. After a long run at the bottom of the “Recession Zone”, the rate has begun to move higher, scoring its sixth month in a row above 72%.

At Gerdau we regularly monitor manufacturing capacity utilization 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 we want to keep you – our valued customers and readers – informed.