Business, Legal & Accounting Glossary
Products that aren’t consumed or quickly disposed of, and can be used for several years. also called hard 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.
You need to understand how your durable goods will sell and try to move them as quickly as you can.
The durable goods warehouse was still able to provide value after being neglected for two years as no inventory items were perishable.
My boss is a firm believer in buying shares in companies that make good computers because those are durable goods and are used over several years before replacement.
durable goods orders
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This glossary post was last updated: 30th October, 2021 | 0 Views.