Overview of the industrial capacity utilization rate

Industrial Capacity Utilization refers to the percentage of production capacity that is actually being used by industries at a given time, relative to their total potential output. It is an important economic indicator that helps gauge the efficiency of production processes and the level of demand in an economy. High capacity utilization suggests that industries are operating near their full potential, which may indicate strong demand and could lead to inflationary pressures. Conversely, low utilization indicates underused capacity, often associated with weaker demand and slower economic growth.