Average hourly real wages flattened out in an environment of mid-seventies capacity utilization in the country.
We will experience this as a fall in the unemployment rate, a rise in capital goods orders and a rise in capacity utilization.
The consumer price index and industrial production and capacity utilization data all came in very close to pre-report expectations by the market place.
Additionally, ORBK noted that the flat panel display industry seems to be recovering from the lower capacity utilization rate environment it saw in the second half of 2010.
The company's break-even point for capacity utilization is one of the best in the industry worldwide.
In manufacturing, capacity utilization is at 40 year highs, Darby tells Forbes, while capital expenditures are near 40-year lows.
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The increased orders improved capacity utilization which we expect to result in gross margin also exceeding the high end of our previous guidance.
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According to the Federal Reserve, there has been a steady increase in industrial production and capacity utilization since the end of last year.
Manufacturing output was unchanged in May but the rate of capacity utilization across industries dropped 0.2%.
In the sixties, seventies, even in the eighties, 75 percent capacity utilization was synonymous with recession, but no longer since the mid-nineties.
Intel's pathbreaking 45-nanometer manufacturing process is yielding at or above all-time record levels, leading to well above average margins in the most recent quarters as capacity utilization gets back to normal.
However, we expect that as the industry revives and demand picks up, TI could leverage this additional capacity and consequently increase its factory utilization rates which, in turn, will improve the gross margins.
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In the meantime Wesbury is watching figures like capacity utilization, which has risen 6.4 percentage points since last June to 74%, the fastest 11-month increase since 1983.
Increased capacity combined with a slowdown in industry demand led to lower factory utilization and declining profit margins.
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However, the industry is suffering from excess capacity especially in the standard specifications sector that is driving down fleet utilization levels as well as the pricing of drilling contracts despite the improving demand outlook.
These are hardly excessive growth rates in normal times, much less in an economy with almost 10 percent unemployment, with capacity utilization down from the 80s to the 60s, and with nonbank credit sinking, productivity growing rapidly, and with unit labor cost declining.
The utilization of existing road capacity will also be increased with a potential consequential reduction in journey times.
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Other reasons include the depth of the recession and the continued slack in the economy evidenced by the low employment growth and the low capacity utilization rate.
As I posted in August, companies are operating with considerable slack (their rate of capacity utilization is a mere 77.5% below the 81% long-term average).
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Industrial production in May was up 4.3% over a year ago, and capacity utilization is at 82%, above the historical average.
The capacity utilization of the flat-rolled products was 81%, and the company faced some losses in shipments in its European operations due to weaker demand and some planned maintenance items.
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