Equipment in excess of the amount firms find it economic to maintain, given their expectations of demand for their products. Firms normally aim to have equipment capable of producing more than the average expected demand for their products: this is to allow for random fluctuations or expected growth in demand, and for occasional breakdowns of equipment. All capacity costs money to maintain; excess capacity is that which is not worth the maintenance costs, and so is likely to be scrapped.

• UNCTAD
• undated security
• under-capitalized
• under-developed country
• under-funded pension scheme
• underlying rate of inflation
• under-subscription
• under-valued currency
• underwriting
• undistributed profits
• UNDP
• unearned income
• unemployable
• unemployment
• unemployment benefit
• unemployment rate
• unexpected inflation
• unfair competition
• unfair dismissal
• unfunded pension scheme
• unified budget
• uniform business rate
• uniform distribution
• union
• unionized