Diverging Measures of Capacity Utilization: An Explanation |
| |
Authors: | Norman Morin John J Stevens |
| |
Institution: | (1) Division of Research and Statistics, Federal Reserve Board, Washington, DC 20551, USA |
| |
Abstract: | In the wake of the recent recovery in manufacturing production,
the capacity utilization rates published by the
Federal Reserve Board (FRB) have rebounded much
more slowly than those published by the Institute for
Supply Management (ISM). As a result, some observers
have speculated that the manufacturing sector may have
considerably less slack than is indicated by the FRB
measures. Our view is that the two characterizations of
manufacturing slack are not as incongruent as they first
appear. This paper discusses the practical and conceptual
differences between these measures of capacity utilization,
and concludes that the recent divergence simply
reflects the character of the latest business cycle.
JEL Classification E220 |
| |
Keywords: | capacity utilization ISM manufacturing business cycle |
本文献已被 SpringerLink 等数据库收录! |