SPY & Capacity Utilization
The percentage of productive capacity being used by factories, mines, and utilities.
SPY Price
Capacity Utilization
What It Measures
Capacity Utilization measures what percentage of the economy's total productive capacity is currently being used. It is calculated as: **Capacity Utilization = (Actual Output / Potential Output) × 100** The measure covers the same sectors as Industrial Production: - Manufacturing (factories) - Mining (oil, gas, minerals) - Electric and gas utilities A reading of 80% means the industrial sector is operating at 80% of its maximum sustainable output.
Why It Matters
**Inflation Predictor**: High capacity utilization (above 80%) suggests potential inflationary pressure as businesses have less room to expand and may raise prices. **Investment Signal**: Low utilization discourages new capital investment; high utilization encourages it. **Fed Watch**: The Federal Reserve monitors capacity utilization as an indicator of economic slack and potential inflation. **Recession Indicator**: Sharp declines in utilization often accompany or precede recessions.
Key Levels
Data Sources
SPY: S&P 500 ETF daily OHLCV data (1993-02-02 to 2026-01-22)
Capacity Util: TCU - Capacity Utilization from Federal Reserve
Units: Percent of Capacity, Seasonally Adjusted, Monthly