Capacity Utilization: Total Index

TCU • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

77.38

Year-over-Year Change

-0.63%

Date Range

1/1/1967 - 8/1/2025

Summary

The Capacity Utilization: Total Index measures the percentage of the nation's total industrial production capacity that is currently being utilized. It is a key indicator of economic activity and inflationary pressures.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

This metric represents the ratio of actual industrial output to the maximum potential output that could be achieved if plants were operating at full capacity. It provides insight into the efficiency and productivity of the manufacturing sector.

Methodology

The Federal Reserve calculates this index based on survey data from manufacturing, mining, and utility companies.

Historical Context

Policymakers and analysts use this trend to assess inflationary risks and guide monetary policy decisions.

Key Facts

  • Capacity utilization averaged around 80% prior to the 2008-2009 recession.
  • Utilization rates fell sharply during the recession, dropping below 70%.
  • Capacity utilization has gradually recovered but remains below pre-recession levels.

FAQs

Q: What does this economic trend measure?

A: The Capacity Utilization: Total Index measures the percentage of the nation's total industrial production capacity that is currently being utilized.

Q: Why is this trend relevant for users or analysts?

A: It provides insight into the efficiency and productivity of the manufacturing sector, as well as inflationary pressures in the economy.

Q: How is this data collected or calculated?

A: The Federal Reserve calculates this index based on survey data from manufacturing, mining, and utility companies.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this trend to assess inflationary risks and guide monetary policy decisions.

Q: Are there update delays or limitations?

A: The data is updated monthly with a short lag, providing timely information on industrial capacity utilization.

Related Trends

Citation

U.S. Federal Reserve, Capacity Utilization: Total Index (TCU), retrieved from FRED.