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Capacity Utilization Rate |
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Capacity utilization rate The percentage of the economy's total plant and equipment that is currently in production. Usually, a decrease in this percentage signals an economic slowdown, while an increase signals economic expansion. Capacity Utilization Rate The extent to which a company uses its facilities at capacity, expressed as a percentage. That is, the capacity utilization rate states how much a company produces as a percentage of what it can produce. For example, if a factory produces 1,000 widgets per day but could produce 2,000 for the same cost, it has a capacity utilization rate of 50%. The capacity utilization rate is most useful for companies producing goods rather than services because goods are simply easier to quantify. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| announced on Wednesday that the capacity utilization rate in manufacturing industry was up to 71. The economic docket for the following week is expected to show the capacity utilization rate fall to a record-low of 65. should continue to increase through 2008 and exceed 90%, while Japan is expected to maintain its 100% capacity utilization rate. |
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