What is the difference between consumer goods and capital goods?

Consumer Goods: Consumer goods are products that individuals and households purchase for personal use and consumption. They satisfy the immediate needs and desires of consumers. Capital Goods: Capital goods, also known as producer goods or intermediate goods, are items used by businesses and industries to produce other goods and services.

What are capital goods?

Capital goods are any tangible asset used by a business to produce goods or services for consumer goods or use by other businesses. They are generally durable goods that can be used more than once. The most common capital goods are property, plant, and equipment (PPE). Natural resources not modified by human hands are not considered capital goods.

What are consumer goods?

Consumer goods are the final version of a product that consumers buy. Anything that an individual buys for private use is considered a consumer good. These can be physical objects or intangible services. Economic professionals often categorize consumer goods into three time-based categories: