capacity utilization rate

(redirected from Capacity Utilization Rates)

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

capacity utilization rate

the ratio of designed CAPACITY to used capacity.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
Mentioned in ?
References in periodicals archive ?
In addition, growth in Caesarstone's home center channel could boost capacity utilization rates "should something come to fruition." On top of this, the stock continues to be "exceedingly cheap," claims the analyst.
Around 55 percent or 11 of the 20 major industries operated at 80 percent and above capacity utilization rates.
'Growth in the Philippines and Vietnam remains robust, but capacity constraints (e.g., high capacity utilization rates) limit further acceleration, especially in the Philippines,' the World Bank said.
During the first half of this decade, capacity utilization rates at most CMOs were below ideal levels.
Average capacity utilization in July stood at 83.3 percent, with 11 major sectors registering capacity utilization rates of 80 percent or more.
say their capacity utilization rates are ramping up towards 100%.
The table below shows capacity utilization rates on annual basis since 2007.
The program also comes with CBA's free Leading Indicators index, which encompasses global labor rates, a novel geographic risk factors algorithm, capacity utilization rates, and other data.
Advanced Forecasting ( predicts the continued increase in sales of IC units will strengthen lab capacity utilization rates, driving ASPs upward, thus fueling a forecasted upswing in the semiconductor cycle in 2006.
The companies have also begun to discuss comprehensive collaboration in development, such as design environments and product development, as well as collaboration in manufacturing to achieve more efficient use of capital investment and increase capacity utilization rates.
In both North America and Western Europe, carbon black capacity utilization rates should continue to increase through 2008 and exceed 90%, while Japan is expected to maintain its 100% capacity utilization rate.
This article analyzes the implications for the transmission mechanism of monetary policy of production inflexibilities that result in variable capacity utilization rates across firms.