Industrial Capacity Utilization Rate

The Industrial Capacity Utilization Rate measures how much of a country’s manufacturing and industrial resources are currently being used compared to their maximum potential. It indicates whether industries are operating near full capacity or if there is spare ability to produce more. A high rate suggests strong demand and efficient use of resources, while a low rate may signal weak demand or excess capacity. This metric helps assess economic health, monitor inflation risks, and guide policy decisions by showing how effectively industries are utilizing their capabilities.