Capacity Utilization Rate Definition Wednesday, November 14, 10:53 AM ET
Capacity utilization refers to the rate at which output potential levels are being used. It is calculated by subtracting the potential output from the actual output, dividing the result by the potential output, and multiplying by 100. According to the Federal Reserve, the average capacity utilization rate in the US since 1967 is about 81.6%. The figure is reported by the Federal Reserve around the middle of each calendar month.
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