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Chart of the Week: Capacity Utilization

Posted By Barry Ritholtz On October 27, 2003 @ 12:00 pm In Finance | Comments Disabled

S&P 500 earnings (blue line) have been rising despite the continued decrease in capacity utilization (gold line).

Earnings vs. Capacity Utilization
earnings_vs_capacity_utlilization.gif
Source: Chart of the Day [1]

This excess capacity is the hangover from the massive over-investment in tech and telecom during the 90s bubble.

Random Notes
Gains in Wages Expected to Give Economy a Lift [2]

Can U.S. growth last? [3]

Despite Profit Improvements, U.S. Stocks May Underwhelm [4]

The end of the Oil Age [5]

The China bubble [6]

0 for 2 on Treasury chiefs [7]

Quote of the Day:
“The world economy is volatile enough without a loose cannon at the U.S. Treasury.” -Paul Erdman [8]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2003/10/chart-of-the-week-capacity-utilization/

URLs in this post:

[1] Chart of the Day: http://www.chartoftheday.com/20031022.htm

[2] Gains in Wages Expected to Give Economy a Lift: http://www.nytimes.com/2003/10/27/business/27WAGE.html

[3] Can U.S. growth last?: http://cbs.marketwatch.com/news/story.asp?guid=%7BD6FFA7F3%2D7750%2D4A4C%2D88AF%2D23704739724A%7D&siteid=mktw

[4] Despite Profit Improvements, U.S. Stocks May Underwhelm: http://online.wsj.com/article/0,,SB106616231766888800,00.html

[5] The end of the Oil Age: http://www.economist.com/opinion/displayStory.cfm?story_id=2155717

[6] The China bubble: http://money.cnn.com/2003/10/23/technology/techinvestor/lamonica/index.htm

[7] 0 for 2 on Treasury chiefs: http://cbs.marketwatch.com/news/story.asp?guid=%7B53C9C182%2DFC6C%2D4198%2D9E24%2D162651E72989%7D&siteid=mktw

[8] Paul Erdman: http://cbs.marketwatch.com/news/story.asp?guid=%7B53C9C182%2DFC6C%2D4198%2D9E24%2D162651E72989%7D&siteid=mktw, CBSMarket Watch

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