Definitions for "Capacity Utilization"
Reported by the Federal Reserve Board, is the rate of the usage of available resources among factories.
the Capacity Utilization Rate is a measure of the industrial output, compared against industrial capacity. A rate nearing 90% is considered to be nearly full capacity and can cause inflation, while a rate close to 70% can be recessionary.
A term used by the Federal Reserve to describe the output of factories, industries and the entire economy. When factories are operating near 85 percent of capacity, they are said to be operating at “full capacity.” Any higher levels are assumed to create higher inflation.
The ratio of units produced to the capacity level of the production facility. A high ration reflects manufacturing productivity.
refers to activities and assets with substantial fixed costs. Generally, unit costs fall with increasing volume.