   
|
|
|
|
Capacity Utilization Rate
|
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...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
|
|
