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Consumer Durables

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In US macroeconomic statistics, consumer durables are those durable goods produced for purchase by consumers. All durable goods, including consumer durables, are arbitrarily defined as goods designed to provide a benefit for at least three years. The importance of consumer durables to macroeconomic statistics stems from consumers' spending behavior. Consumers tend to buy more consumer durables, such as automobiles and major household appliances, when consumer confidence and household incomes are high. Consequently, manufacturers of consumer durables tend to be cyclical companies. Changes in aggregate spending on various consumer durables categories are meaningful barometers of the economy, the largest part of which is consumer expenditure. Consumer durables expenditure is a small portion of consumer expenditure, but this portion fluctuates more than consumer non-durables expenditure, which is more constant, and consumer expenditure on services, which is not subcategorized as durable or non-durable.



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