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Macronomics: High Capacity Utilization = A New Capex Cycle?


In Macronomics today, we will check something that came from the RBI recently - a Capacity Utilization Survey. This indicates how much of available capacity is being used now, across all industries. In December, it seems the utilization levels had reached nearly 76%, the highest since Jan 2013!

This provides a simple question: What is Utilization, for goodness' sake?

Let's say you own a printer. It can print, if used continuously, 1000 sheets per hour. You can use it for, say, 16 hours at a time, and it has to rest for 8 hours.

The capacity of this machine is . . .

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