Industrial Capacity Remains In Uptrend

2026-02-24 06:20:00 ET

Industrial capacity continues in an uptrend as utilization remains low. This is a sign of econometric expansion. First, capacity is built to cover both current and expected needs several years in the future. Second, as demand dictates, that capacity is brought on-line, reflecting what appears to be capacity builds when utilization is low. If analysts do not connect management expectations with actions, they fall into the trap of interpreting this information as management not knowing what it is doing and driving companies into capital expenditure holes from which they cannot emerge. Nothing is further from the truth than what we are seeing in the combined economic indicators i.e., Durable Goods Orders, Real Personal Income, Construction Employment and etc....

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