The trend since 2019.
The current read: Capacity Utilization is at 76.1% as of June 2026. Source: FRED/BEA via Indicators IQ.
Why it matters.
When factories have spare capacity, employers stay cautious about hiring and wages grow slower. When utilization climbs too high, companies raise prices and the Fed worries about inflation, potentially hiking rates and making your mortgage or loans more expensive.
Where it fits.
Capacity Utilization feeds the Growth view — one of the six areas behind the site's Macro IQ score.