Usually means: Percentage of potential output used.
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We found 8 dictionaries that define the word capacity utilization rate:

General (2 matching dictionaries)
  1. capacity utilization rate: Wiktionary
  2. capacity utilization rate: Dictionary.com

Business (6 matching dictionaries)
  1. MoneyGlossary.com (No longer online)
  2. INVESTORWORDS (No longer online)
  3. Terms related to the Federal Reserve, banking and economics (No longer online)
  4. Capacity Utilization Rate: Investopedia
  5. Capacity Utilization Rate: Financial dictionary
  6. BusinessDictionary.com (No longer online)

Definitions from Wiktionary (capacity utilization rate)

noun:  (management, operations) The percentage of the capacity of a device or system that is being used productively.

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