What does capacity utilization rate mean?

capacity utilization rate meaning in Law Dictionary

The portion associated with the economy's complete plant and equipment that is at this time in manufacturing. Often, a decrease inside percentage signals an economic slowdown, while a growth signals financial development.

capacity utilization rate meaning in Business Dictionary

Percentage of the production capability (of a strong, industry, or commercial sector) really employed for production during a month, one-fourth, 12 months. Also known as operating proportion.