The capacity utilization has stayed flat at 81.4%. Plant and equipment is still being used. The recession would see the utilization rate fall swiftly below 80 percent. A high utilization rate also gives us some insight on potential inflation. With the utilization rate below the highs, the inflation focus will be on commodities and not production.
Wednesday, January 16, 2008
Capacity utilization flat
The capacity utilization has stayed flat at 81.4%. Plant and equipment is still being used. The recession would see the utilization rate fall swiftly below 80 percent. A high utilization rate also gives us some insight on potential inflation. With the utilization rate below the highs, the inflation focus will be on commodities and not production.
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