Definition of Consumer Non-Durables

Consumer nondurables is a term used when economists talk about consumption of goods. Nondurables are goods purchased and used by consumers within a short period of time.

Description

Any item that a consumer uses within three years of purchase is considered a nondurable good, as is an item with an expected lifespan of less than three years. Nondurable goods are also those used by people for their daily needs and consumption.

Categories

Nondurable goods is a broad category that is broken down into three smaller categories. Perishable goods includes all food, whether fresh, canned or frozen; food, even if frozen, is expected to be consumed within three years. Semidurable goods are mainly electronic devices such as cell phones and hand radios; although they may last longer, most are expected to be used and disposed of within three years. Soft goods are clothing and textile merchandise, such as towels.

Purpose

Economic indexes measure production of consumer nondurable goods monthly. This and other consumption figures are calculated and compared, to analyze economic growth.

References

• Business Dictionary: Consumer Non-Durables
• Investor Words: Non-Durable Good
• Altius Directory: Consumer Goods
• Federal Reserve Statistical Release: Industrial Production and Capacity Utilization