Capacity Utilization Rate at 78.3% in September 2012

For all those who are concerned that precious metals will go down for the rest of this year, there is some light  at the end of the tunnel.

Capacity utilization rate for the total industry was up to 78.3% in September 2012 from 78% in August 2012. In particular, the mining industry recovered well, from 88.4% in August to 89.1% in September.

While looking at these numbers, I don't see precious metals crashing just yet.

Table 1: Capacity Utilization Rate

Chart 1: Capacity Utilization Rate

This statement can be confirmed if we look at the resource producing countries of Canada, Russia and Brazil. All of them are in a rising trend.

Chart 2: Brazil Capacity Utilization

Chart 3: Russia Capacity Utilization

Chart 4: Canada Capacity Utilization

The only country that isn't doing as well is Australia, where the capacity utilization rate declined over the entire year.

Chart 5: Australia Capacity Utilization

The probable reason for Australia's declining capacity utilization rate is a slowdown in China, which can also be seen in their capacity utilization rate, which is at a record low of 60% according to the IMF.

Chart 6: China Capacity Utilization Rate