Business, Legal & Accounting Glossary
In US macroeconomic statistics, durable goods are arbitrarily defined as goods expected to last at least three years. Other goods are called non-durable goods. Durable goods are often subcategorized. Durable goods made for the consumer are called consumer durables. The emphasis on durable goods and consumer durables in economic statistics is founded in purchasing behaviour. Spending on durable goods tends to increase during an upswing in the economic cycle. Companies tend to replace old capital equipment when profits are high; consumers tend to replace more major household items when consumer confidence and household incomes are high. Accordingly, manufacturers of durable goods tend to be cyclical companies. Changes in aggregate spending on various durable goods categories are meaningful barometers of economic conditions.
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This glossary post was last updated: 9th February, 2020 | 1 Views.