By Dave Anderson:
Calculated Risk has put together the following graph on US capacity utilization. The higher the capacity utilization, the better the economy is and the better the labor market is. There is some good news in this graph, although the absolute level is still pretty bad:
The level is horrendous. It is still below the trough of the 2001/2002 recession. However the good news is the first derivative. It is much higher than it was in 2002 through 2004. That recession was U-shaped and the jobless nature of it went on too damn long (I got out of graduate school in the middle of the job-loss portion of the recession; I mistimed grad school horrendously). Right now capacity utilization looks to be V-Shaped. That might be some good news over the medium term.
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