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What Is Capacity Utilization Rate? Capacity utilization rate measures the percentage of an organizations potential output that is actually being realized. The capacity utilization rate of a company or a national economy may be measured in order to provide insight into how well it is docHubing its potential.
Basic Info. US Industrial Production Index is at a current level of 102.33, up from 102.23 last month and down from 102.57 one year ago. This is a change of 0.10% from last month and -0.23% from one year ago.
What Does It Mean? Capacity utilization refers to how much of a factorys production capacity is currently being utilized. The KPI tracks how much of a manufacturing operations potential output is being met and includes everything from machinery capacity to available resource utilization.
Industrial Capacity (CAP) is the amount of resources available to enable an industry to produce goods.
US Capacity Utilization: Total Industry is at 78.25%, compared to 78.26% last month and 79.55% last year. This is lower than the long term average of 80.03%.
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A rate of 85% is considered the optimal rate for most companies. The capacity utilization rate is used by companies that manufacture physical products and not services because it is easier to quantify goods than services.
Capacity Utilization reflects overall growth and demand in the economy. It can also act as a leading indicator of consumer price inflation. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

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