Investor Glossary-capacity utilization rateInvestor Glossary-capacity utilization rateInvestor Glossary-capacity utilization rateInvestor Glossary-capacity utilization rateInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Capacity Utilization Rate

The HTML to link to this page
 

The capacity utilization rate is the value of production capacity which is actually being utilized over a specific period of time. The capacity utilization rate is measured in percentages and is adjusted to reflect production aptitude of various capital goods and natural resource producers, as well as factories, utilities and the like. Although lower capacity utilization rate yields potential for increased output, eighty five percent tends to be a critical benchmark value. Having surpassed the eighty five percent barrier, the capacity utilization rate may signal a possibility of impending inflation. The capacity utilization rate is an important measure of economic performance. Thus, the capacity utilization rate is carefully analyzed by the Fed. However, the capacity utilization rate does not invariably provide most accurate feedback of economic and market conditions. Hence, the capacity utilization rate is corroborated with other economic indicators to elucidate the overall economic posture.



Rate this capacity utilization rate definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, EBITDA, average price per share, current ratio, FTSE, 1035 exchange, LIBOR, annual return, deferred revenue, option premium, 401a, command economy, open position, real GDP, implied volatility, in escrow, quality assurance, cancelled check, dividends payable, covered put, stock split, 1031 exchange, class C shares, required rate of return, ex-dividend, limit order, risk management, Zero Cost Collar, reverse mortgage, minority interest, VIX, deferred tax, Key Rate Duration, margin rate, wholly-owned subsidiary, APR, 144a, diluted share, stock market close, FICO score, ex-dividend date, phantom income, per diem, debt service coverage, balance sheet, retained earnings, irrevocable trust, labor relations, liquidity ratio


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use