Measuring the Unseen A Primer on Capacity Utilization
Capacity-utilization measures can be useful in evaluating industry price pressures, investment, and war mobilization capabilities. In this first article of a two-part series, the authors define and examine some of these measures. The upcoming July 1 Economic Commentary uses the concepts to analyze two widely disseminated indexes of capacity utilization.
The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit clevelandfed.org for updates.