Define: Durable Goods

UK Accounting Glossary

Definition: Durable Goods



Advertisement



Full Definition of Durable Goods


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.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/durable-goods/
Modern Language Association (MLA):
Durable Goods. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 19, 2020 https://payrollheaven.com/define/durable-goods/.
Chicago Manual of Style (CMS):
Durable Goods. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/durable-goods/ (accessed: February 19, 2020).
American Psychological Association (APA):
Durable Goods. PayrollHeaven.com. Retrieved February 19, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/durable-goods/

Definition Sources


Definitions for Durable Goods are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.