by Calculated Risk on 3/17/2022 09:22:00 AM
From the Fed: Industrial Production and Capacity Utilization
Total industrial production in February was 7.5 percent higher than its year-earlier level, but severe winter weather in February 2021 significantly suppressed industrial activity that month. A more useful comparison shows that the index has advanced a still-strong 4.2 percent since January 2021. Capacity utilization for the industrial sector increased 0.3 percentage point in February to 77.6 percent, a rate that is 1.9 percentage points below its long-run (1972-2021) average.
This graph shows Capacity Utilization. This series is up from the record low set in April 2020, and above the level in February 2020 (pre-pandemic).
Capacity utilization at 77.6% is 1.9% below the average from 1972 to 2020. This was below consensus expectations.
Note: y-axis doesn’t start at zero to better show the change.