1.   America is riding a capital spending boom that is modernizing its existing industrial base and expanding its industrial capacity.

2.   And in Brazil, utilization of industrial capacity is at its highest in four years.

3.   A government report on industrial capacity and production left bonds little changed, and is likely to have little effect on stocks.

4.   Also, a boom in business investment, by raising industrial capacity, is helping keep prices in check, Meyer said.

5.   Brown said manufacturing remains a weak link in the economic chain, with the much industrial capacity available to meet any increase in demand without pushing prices higher.

6.   But growing back into the huge industrial capacity assembled when there was no end in sight to the economic boom will take longer.

7.   But the talk of the bond market was the surprising jump in industrial capacity utilization.

8.   Capacity utilization, or the plant-use rate, measures the amount of industrial capacity in use.

9.   Central bankers are especially concerned that the high level of industrial capacity in use could translate into increased production costs and higher consumer prices.

10.   Gov. Laurence Meyer suggested the Fed may raise interest rates further, citing risisng labor costs, low unemployment and the highest percentage of U.S. industrial capacity in use.