What Are Consumer Durables?

Consumer durables, also known as durable goods, are a category of consumer goods that do not wear out quickly and therefore do not have to be purchased frequently. They are part of core retail sales data and are considered durable because they last for at least three years, as the U.S. Bureau ✱of Economic Analysis defines. Examples include l✤arge and small appliances, consumer electronics, furniture, and furnishings.

Understanding Consumer Durables

Durable goods derive their name from the fact that they last in value for a relatively long time. An individual’s wealth is preserved by spending a high proportion of their income on durable, investment, or capital goods b🧸ecause the goods reta♋in their economic value for longer periods of time.

Investors, business owners, and economists closely monitor expenditures and new orders for consumer durables as a sign of sustainable 澳洲幸运5官方开奖结果体彩网:economic growth. Durable goods consumption leads 澳洲幸运5官方开奖结果体彩网:gross domestic product (GDP) over the business cycle. So, if durable goods is above its consumption trend, then the GDP is also likely to be above its trend in the next quarter.

Some examples of consumer durables are large and small appliances, furniture and furnishings, carpets and rugs, rubber tires, lead-acid automotive batteries, consumer electronics, luggage, sporting goods, and household goods. Automobiles, mobile homes, boats, and fine jewelry are also durable goods.

Consumer Durables vs. Nondurable Goods

The basic difference between durable and nondurable goods is that the former lasts for three years or m🎃ore, while the latter is used up in fewer than three years. Also, durable goods maintain their economic value much longer than nondurable goods.

Durable goods tend to be more expensive than nondurable goods, so p🔯eople usually invest in them when the economy is good, and they are feeling prosperous.

However, this rule of thumb doesn't always hold—consumer spending on durable goods rose during the COVID-19 pandemic (after a brief but sharp contraction), which battered the economy. Lockdowns and social distancing reduced the demand for services, while government subsidies intended to help people weather the crisis financially increased disposable income.

Categories of Consumption

Personal consumption expenditures in the economy are divided into goods and services. Goods are divided into durable goods and nondurable goods.

In December 2024, total personal consumption expenditures totaled $16.35 trillion. Of that, goods totaled $5.61 trillion, of which $2.15 trillion were durable goods.

This sector's main growth drivers were (1) recreational goods and vehicles and (2) motor vehicles and parts.

Examples of Consumer Durable Goods Companies

ﷺSome publicly traded consumer durables producers include Kimberly-Clark Corp., ABB Ltd., Johnson Controls International PLC, The Clorox Co., Mohawk Industries, and Whirlpool Corp.

These companies are divided into subsectors of conta💃iners and packaging, electrical products, industrial specialti༺es, specialty chemicals, home furnishings, and consumer electronics/appliances.

The Bottom Line

Consumer durables are goods with staying power. The U.S. Bureau of Economic Analysis defines them as lasting for three years or more, unlike nondurable goods, which are used up in less than three years.

Consumer durables hold their economic value better for longer than nondurable goods, and their sale helps drive the U.S. economy. When the sales of consumer durables are up, it generally forecasts 澳洲幸运5官方开奖结果体彩网:a rise in GDP in the next quarter because consumers tend to purchase them when they are feeling prosper෴ous.