April Capacity Utilization displays historic growth

St. Paul, MN (May 17, 2021) — April’s durable goods capacity utilization was 73.6%, which, was the third month in the last four with capacity utilization greater than 73.6%, according to Steven Kline, Jr., Chief Data Officer, Gardner Business Media.

Kline says that compared with one year ago, capacity utilization increased 36.5%, which was the second consecutive month of accelerating growth. April’s month-over-month rate of growth was more than twice as fast as the next fastest rate of growth. Of course, this is mostly due to the easy comparison with last April’s low capacity utilization resulting from the lockdown of the economy.

The annual change in durable goods capacity utilization contracted at a decelerating rate for the second month in a row, according to Kline. The annual rate of contraction of 3.7% was the slowest since March 2020. The annual rate of contraction has bottomed out and is now decelerating at a rapid rate. As the annual rate of change tends to lead capital equipment consumption by seven to 10 months, capacity utilization is signaling a bottom in the annual rate of change in capital equipment about the second quarter of 2021.

The GBI says: Metalworking backlog index tends to lead the annual rate of change in capacity utilization by seven to 10 months. In April, the backlog index was 60.0, the second straight month above 60, and above 50, indicating growth in backlogs for the fifth straight month. The backlog index grew 136.2% compared with one year ago. This was the eighth straight month of growth. The annual rate of growth in backlogs accelerated for the second month in a row, indicating that the annual rate of change in capacity utilization should see decelerating contraction for most of 2021.

Read more from GBI at: https://www.gardnerintelligence.com/

Matsuura Machinery USA, Inc., located in St. Paul, MN is the U.S. subsidiary of Matsuura Machinery Corporation in Japan. Since 1935, Matsuura has been the forerunner in designing innovative technology and manufacturing solutions to a variety of industries around the globe. Matsuura Machinery USA, Inc. delivers unmatched excellence in 5-axis, vertical, horizontal, linear motor, multi-tasking CNC machine tools and machines with a powder bed metal AM platform with machining capability. Matsuura Machinery USA, Inc. provides the service, applications and technical field support that have always been the Matsuura standard for business.

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