consumer goods

pl.n.
Goods, such as food and clothing, that satisfy human wants through their direct consumption or use.

View more Business & Finance videos

For more information on consumer goods, visit Britannica.com.

goods bought for personal or household use, as distinguished from capital goods or producer’s goods, which are used to produce other goods. The general economic meaning of consumer goods encompasses consumer services. Thus the market basket on which the consumer price index is based includes clothing, food, and other goods as well as utilities, entertainment, and other services.

Previous:	Consumer Finance Company, Consumer Durables
Next:	Consumer Interest, Consumer Price Index (CPI)

Merchandise made to be used by the consumer for personal use; also called consumer products. Such items as food and clothing are considered to be consumer goods. Automobiles are likewise consumer goods, but the chrome sold to the automobile manufacturer for use on an automobile is not. (The chrome would come under the category of industrial goods.) Consumer goods are further classified as nondurables and durables, soft goods and hard goods, and packaged goods.

Goods which are “used or bought for use primarily for personal, family, or household purposes.” U.C.C. §9-109. “Consumer goods” is one of four categories of goods distinguished by the Uniform Commercial Code; the classifications are important for such purposes as determining the rights of persons who buy goods subject to a security interest, rights after a default, and rights among those with conflicting security interests in the same collateral.
Thus, consumer goods are to be distinguished from equipment, which are goods used or bought for use primarily in business; from farm products, which are goods in the possession of one engaged in a farming operation “if they are crops or livestock or supplies used or produced in farming operations or if they are products of crops or livestock in their unmanufactured states” and from inventory, which are goods held for sale. U.C.C. §9-109.
The classification of goods is determined by its primary use.

Goods, such as food and clothing, that satisfy human wants through their consumption or use. (Compare capital goods.)

Products that are purchased for consumption by the average consumer. Alternatively called final goods, consumer goods are the end result of production and manufacturing and are what a consumer will see on the store shelf.  Clothing, food, automobiles and jewelry are all examples of consumer goods. Basic materials such as copper are not considered consumer goods because they must be transformed into usable products.

Investopedia Says:
The measurement of consumer goods sales is important in the assessment of gross domestic product and in determining the health of the overall economy. Demand for consumer goods indicates whether consumers are willing to part with cash. Items are only counted as consumer goods once - if they are resold, they will not be included in economic calculations.

Related Links:
It's the key to any market economy, so investors need to learn the measures and how to analyze them. Consumer Confidence: A Killer Statistic
From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone. Explaining The World Through Macroeconomic Analysis
Use a global view to determine which stocks belong in your portfolio. A Top-Down Approach To Investing
Find out why economists are torn about how to calculate inflation. Why The Consumer Price Index Is Controversial
What is GDP and why is it so important?

For a list of words related to consumer goods, see:

• Economics and Economic Theory - consumer goods: products purchased by individuals for personal use
• Commerce and Trade - consumer goods: products made for and sold directly to individuals to be used as sold

---

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)