capacity utilization rate

(redirected from Utilization Rate)
Also found in: Acronyms, Encyclopedia.

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.

capacity utilization rate

the ratio of designed CAPACITY to used capacity.
Mentioned in ?
References in periodicals archive ?
The other factors behind the FTAs' low utilization rate included small trade volumes with countries, and countries outside of AEC being their major markets such as the United States and Mexico.
The initial survey results also showed that Philippine enterprises have higher utilization rate in ASEAN or the ASEAN Trade In Goods Agreement followed by China and Japan.
When asking about the FTA utilization rate in Myanmar and Cambodia, the replies are almost always glowh in both countries.
Breaking the capacity utilization rate down by categories: the rate for the manufacture of investment goods fell 1.
Industry executives pointed out that in the second half of this year increased demands, along with capacity addition slowdown, will drive up utilization rates.
The table below shows capacity utilization rates on annual basis since 2007.
In the final week of the year, the capability utilization rate was 87.
Because the ISM only began to publish an average utilization rate in 1989, cyclical comparisons of the two measures are limited.
On an industry basis, the capacity utilization rate fell 0.
4 percent, and the utilization rate decreased to 88.
If pipe shops are removed from the analysis, the overall melt utilization rate jumps five more percentage points, underscoring the 1995 capacity crunch among producers of engineered castings.
t - i]'s are that industry's current and lagged capacity utilization rate.