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Capacity Utilization

Name: Capacity Utilization
Creator: TipRanks

Capacity Utilization in the USA measures the extent to which the industrial sector is using its installed productive capacity. It is significant because it indicates the overall slack in the economy and potential inflationary pressures. High capacity utilization can signal increased demand and potential for price increases, impacting monetary policy and financial markets. Conversely, low utilization suggests underused resources and potential economic weakness.