Thursday, March 29, 2012

Long Term Capacity Utilization Chart

Given that real GDP has moved beyond its pre-recession high, one might expect that capacity utilization would be narrowing and at least above its own pre-recession mark.  However, capacity utilization as reported in February is still only 78.7.  Optimists might look at this as a sign that there is still room to improve; pessimists might point to this as being a sign that the economy isn't nearly as strong as sentiment would imply.

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