Total Capacity Utilization
76.3% ▲
Slack Capacity · MoM: +0.0 ppt
Capacity utilization measures the percentage of resources, such as factories and equipment, that a nation is currently using to produce goods. It serves as a vital indicator of economic health and potential inflationary pressures. When the rate is high, it suggests strong demand; when low, it indicates unused potential.
Capacity Utilization
Capacity Utilization Components
| Measure |
Current |
MoM |
YoY |
| Total Industry |
76.3% |
+0.0 |
+0.0 |
| Manufacturing (NAICS) |
75.5% |
+0.1 |
+0.1 |
| Manufacturing (SIC) |
75.6% |
+0.1 |
+0.1 |
In February 2026, total industrial capacity utilization held firm at 76.3%, showing no change on both a month-over-month and year-over-year basis. Manufacturing utilization provided a slight bright spot, edging up by 0.1 percentage points to reach 75.5%. These figures suggest a leveling off in industrial activity following previous fluctuations. The overall stability highlights a cautious production environment across the broader industrial sector.
Capacity Regime
Capacity Regime
Slack Capacity
The current environment is classified as a slack capacity regime with a stable trend. This level of underutilization typically suggests minimal upward pressure on inflation from the industrial sector. With significant room for growth before hitting bottlenecks, the economy remains in a non-inflationary production phase.
Capacity Utilization Trend
Historical Parallels
Current Utilization
76.3%
Avg Utilization 3M Later
76.0%
Avg Utilization 6M Later
75.9%
| Date | Capacity Util | 3M Later | 6M Later |
|---|
| Aug 2025 |
76.1% |
75.6% |
76.3% |
| Jul 2025 |
76.4% |
75.6% |
76.3% |
| Jun 2025 |
76.2% |
76.0% |
75.8% |
| May 2025 |
75.9% |
76.1% |
75.6% |
| Apr 2025 |
76.1% |
76.4% |
75.6% |
Analysis of 19 similar historical periods suggests that utilization levels often remain subdued in the short term. On average, utilization has trended slightly lower to 76.0% three months after hitting these specific markers. This historical pattern points toward a continued period of industrial consolidation rather than an immediate breakout.
Market Snapshot
Note: Capacity Utilization is a monthly indicator with limited direct intraday market impact. Market data shown below reflects broad conditions.
Market Snapshot
Top Movers
| Stock | 1D | 1M |
|---|
| NSA National Storage Affiliates Trust |
+30.03% |
+21.7% |
| NBIS Nebius Group N.V. |
+14.96% |
+44.7% |
| BMNR Bitmine Immersion Technologies, Inc. |
+13.88% |
+18.5% |
| BCRX BioCryst Pharmaceuticals, Inc. |
+13.14% |
+36.8% |
| OLMA Olema Pharmaceuticals, Inc. |
+12.85% |
-30.1% |
Bottom Movers
| Stock | 1D | 1M |
|---|
| IPX IperionX Limited |
-15.57% |
-26.4% |
| VIA Via Transportation, Inc. |
-14.69% |
-18.6% |
| TXG 10x Genomics, Inc. |
-11.18% |
-4.7% |
| VNET VNET Group, Inc. |
-9.32% |
-32.1% |
| FSLY Fastly, Inc. |
-7.28% |
+42.1% |
The S&P 500 currently sits at $6699, having declined 2.0% over the past month. As a mid-tier monthly release, these utilization figures provide a stabilizing data point for investors concerned about overextension. The lack of growth in utilization aligns with the recent cooling seen in broader equity markets.
Sector Performance
Sector Performance
| ETF |
Price |
1D |
1M |
6M |
1Y |
YTD |
VS S&P 500 |
| XLI Industrials |
$166.06 |
+0.86% |
-3.9% |
+10.4% |
+30.7% |
+7.1% |
-1.9% |
| XLB Materials |
$49.40 |
+0.43% |
-6.5% |
+8.8% |
+18.7% |
+8.9% |
-4.5% |
| XLE Energy |
$57.90 |
+0.35% |
+7.3% |
+32.9% |
+37.2% |
+29.5% |
+9.2% |
| XLK Technology |
$138.78 |
+1.45% |
-0.3% |
+2.8% |
+34.5% |
-3.6% |
+1.6% |
Industrial & Manufacturing Stocks
Industrial & Manufacturing Stocks
| Stock |
Price |
1D |
1M |
6M |
1Y |
YTD |
VS S&P 500 |
| HON Honeywell |
$234.51 |
+0.00% |
-2.2% |
+10.9% |
+14.6% |
+20.2% |
-0.3% |
| GE GE Aerospace |
$304.00 |
+1.44% |
-2.8% |
+8.1% |
+58.4% |
-1.3% |
-0.9% |
| DE Deere & Co |
$572.48 |
-0.87% |
-4.3% |
+22.1% |
+23.8% |
+23.0% |
-2.3% |
| FCX Freeport-McMoRan |
$57.93 |
+2.75% |
-6.6% |
+30.0% |
+55.9% |
+14.1% |
-4.7% |
| CMI Cummins |
$545.03 |
+1.74% |
-7.4% |
+32.8% |
+76.1% |
+6.8% |
-5.5% |
| CAT Caterpillar |
$699.78 |
+0.83% |
-7.7% |
+62.6% |
+112.3% |
+22.2% |
-5.8% |
| EMR Emerson Electric |
$133.09 |
+0.64% |
-7.9% |
-1.5% |
+22.9% |
+0.3% |
-5.9% |
| STLD Steel Dynamics |
$174.28 |
+2.16% |
-12.6% |
+33.9% |
+43.0% |
+2.9% |
-10.7% |
| NUE Nucor |
$162.74 |
-0.45% |
-13.8% |
+15.6% |
+27.2% |
-0.2% |
-11.9% |
For industrial and manufacturing stocks, these figures suggest a period of limited organic growth catalysts. Companies may face margin pressure if fixed costs remain high while production levels fail to accelerate. Investors should look for firms with high operational efficiency that can thrive even in a slack capacity environment.
Positioning
Investors may want to adopt a neutral stance on cyclical industrials until utilization begins to trend toward tighter levels. Focus should shift toward capex beneficiaries that help companies improve efficiency rather than those relying on pure volume expansion. Maintaining a defensive posture within the industrial sector appears prudent given the current stable but slack regime.