Capacity Utilization Numbers Not Signaling Recession

Includes: SPY, XLI, XLU
by: William Trent, CFA

Overall capacity utilization rose to 80.5 percent in March, from 80.3 percent in February and compared to the market expectation of 80.3 percent. According to Econoday, the report overstates strength in the industrial sector with the March gain almost entirely due to large gains in utilities and in mining.

click to enlarge

Still, we have yet to see the spike down in capacity utilization that has accompanied every recent recession.