US Capacity Utilization Holds at 1-Year High

Industrial capacity utilization in the US was unchanged from the previous month at 76.3% in August of 2026, the highest in one year, but slightly under market expectations of 76.4%. Despite the growing momentum since the start of the year, the result remained well under the long-run average of 79.4%. Capacity rose for manufacturing (76% vs 75.9 in July) as utilization rates continued to surge for computer and electronic products (77.2% vs 76.2%) and electrical equipment (86.6% vs 85.5%), aligned with soaring levels of capital expenditure on AI infrastructure and compute. Meanwhile, nondurable manufacturing utilization rates fell to 75.6% from 76%.

US capacity utilization edged up to 76.3% in July 2026, the highest level in a year, from an upwardly revised 76.2% in June, matching market expectations. Despite the modest increase, the utilization rate remained 3.1 percentage points below its 1972-2025 historical average. Among the major sectors, utilities utilization rose the most, increasing 0.2 percentage points to 70%, although it also remained below its historical average. Manufacturing utilization increased 0.1 percentage point to 76%. Mining utilization also rose 0.1 percentage point to 86.1%, staying 0.9 percentage points above its long-term average.

US capacity utilization stood at 76.1% in June 2026, unchanged from the previous month following a downward revision and slightly below market expectations of 76.2%. The reading marked a third consecutive month of stable capacity utilization, remaining 3.3 percentage points below its long-run average for 1972–2025. Among the major sectors, the operating rate for utilities edged up 0.2 percentage points to 69.5%, though it remained 14.5 percentage points below its historical average. Mining utilization also increased, rising 0.4 percentage points to 87.4%. By contrast, manufacturing capacity utilization edged down to 75.7%, remaining 2.5 percentage points below its long-run average.