U.S. Manufacturing Capacity Utilization: Manufacturing capacity utilization (MCU) reached 73.8% in March 2021, up 2.7% month on month (m/m). On a year on year (y/y) comparison, the MCU was a modest +3.4%.

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 index has begun to move higher, scoring its first month above 72% since October 2020.

At Gerdau we regularly monitor the manufacturing capacity utilization data issued by the Federal Reserve because it provides excellent insight into the health of U.S. manufacturing activity. We know that when manufacturing is performing well, so are steel sales, and we want to keep you – our valued readers – informed.