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Monday, October 18, 2010

Industrial Production and Capacity Utilization Fall

Awhile back, I posted a graph showing the relationship between unemployment and capacity utilization. Here's an updated version:

Caputil-un[Note: To highlight the relationship, the graph shows 100-(UN rate) on the left-hand scale. Thus, an upward movement in the red line represents a decline in unemployment.]

Though one month does not constitute a trend, today's data on capacity utilization are not very encouraging:

Industrial production decreased 0.2 percent in September after having increased 0.2 percent in August. ... The capacity utilization rate for total industry edged down to 74.7 percent, a rate 4.2 percentage points above the rate from a year earlier but 5.9 percentage points below its average from 1972 to 2009.

Calculated Risk and spencer at Angry Bear have more on the report.

    Posted by on Monday, October 18, 2010 at 11:56 AM in Economics, Unemployment | Permalink  Comments (8)


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