ABSTRACT
In this study information about the utilization of production capacity of the Mexican manufacturing sector, which was collected from a sample of business in this sector obtained through the Current Survey of the Banco de Mexico is used. The objective of this study is twofold: In the first place, it intends to explore the possibility of using results of utilization of production capacity, which were released by the Current Survey, as a reliable indicator of the future pressure of inflation in Mexico. Secondly, we try to find out whether the Banco de Mexico and the respondents of the survey have the same understanding of the term 'utilizaion of production capacity5.
