Difference btewen durable good demand and nondurable good?

Answer 1

What Is the Difference Between Durable Goods and Non-Durable Goods? by W D Adkins, Demand Media

Consumers buy an enormous variety of products. Some are goods that will last for many years. Other items are consumed on the spot when we purchase them. To businesspeople and economists, these are known as durable and non-durable goods. The production of durable and non-durable goods is the basis for important measures of economic trends.

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Description

Durable goods tend to have a long useful life. For statistical purposes, a durable good is expected to last at least three years, according to the Economics and Statistics Administration. Goods consumed in a short time or that have useful lives of less than three years are classified as non-durable. The dividing line isn't always rigid. For example, people sometimes use a piece of clothing for more than three years.

Types

Consumer durable goods include items like furniture, jewelry and cars. Large appliances such as stoves and washing machines are durable goods. The category also includes defense and commercial procurement of heavy equipment and assets like aircraft, trucks and ships. Non-durable goods include food, medicines and other consumables, as well as products that last a limited lifetime such as clothing, shoes and small electronic devices.

Economic Reports

The Bureau of the Census publishes monthly reports that provide up-to-date information on the production of durable and non-durable goods. The Advance Report on Durable Goods gives information on recent and estimated factory orders for durable goods along with statistics on non-durable goods orders and shipments. Another report, Manufacturers' Shipments, Inventories and Orders, supplies additional information on both durable and non-durable goods.

Significance

The market for some non-durable goods, such as food, tends to be stable. Growth in other consumer products, like clothing and electronics, indicates economic growth. The significance of changes in durable goods production and sales is more complex. Generally, increases tend to indicate economic growth and the likelihood of job growth in the manufacturing sector. However, an unexpected jump is often an indicator of inflationary pressures on prices. Sudden increases thus may lead to a rise in interest rates and cause bond prices to fall. Economists sometimes exclude categories such as defense procurement and aircraft because they tend to be volatile and may vary for reasons that have little to do with overall economic trends.