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.
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
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Around 55 percent or 11 of the 20 major industries operated at 80 percent and above capacity utilization rates.
The Central Bank Tendencies of the Manufacturing Industry Survey calculates the capacity utilization rate -- the percentage of a company's production capacity that is actually used over a particular period of time -- based on the provisional results of 2,227 manufacturers.
When compared with May 2010 figures, the capacity utilization rate dropped by 1.2 points to 72 percent in durable consumer goods, and it was up by 0.2 point to 71.3 in in non-durable consumer goods.
The limited revival in Turkey's capacity utilization rate and Real Sector Confidence Index (RSCI) seem to have indicated that the worst is over in the EU led slowdown.
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.
If the dollar falls by enough to reduce the current account deficit by 25 percent, the country's capacity utilization rate will rise from 79 percent to 86 percent.
In particular, the higher the variance of idiosyncratic shocks, the lower the utilization rate in the firms experiencing the worst individual shocks and, consequently, the lower the aggregate capacity utilization rate. Thus, in situations of high idiosyncratic risk, a large fraction of firms under use their productive capacity, implying a strong response of macroeconomic variables, such as output and employment, to a money supply shock.
Order books are strong and the capacity utilization rate is very high.
The capacity utilization rate for America's durable-goods manufacturers dropped slightly in October to 70.5% of theoretical maximum, from 70.7% in September (see table).
The total domestic casting industry is operating at a capacity utilization rate of 82%.
where [[Pi].sub.t] is the monthly percentage change in an industry's net output price level, the [[Pi].sub.t - i]'s are lagged price changes, and the [cu.sub.t - i]'s are that industry's current and lagged capacity utilization rate. Unlike in Shea's study, estimates of the above relationship cannot be interpreted as supply curves, because capacity utilization and price changes are equilibrium values determined by the intersection of the demand and supply schedules.