what is Consumer Durables

Consumer durables, also known as durable goods, are a category of consumer goods that are designed to last for an extended period, typically three years or more. They are an important component of retail sales and play a significant role in the economy. Here's a detailed analysis of consumer durables: 1. **Economic Impact**: The purchase of consumer durables is considered a key driver of economic growth. As individuals buy more durable goods, it leads to increased demand, which in turn creates more jobs and stimulates further spending. 2. **Examples of Products**: Consumer durables include a wide range of products such as large and small appliances, furniture, consumer electronics, and automobiles. These products are characterized by their longevity and ability to retain their value over time. 3. **Companies in the Sector**: Major companies in the consumer durables industry include Kimberly-Clark Corp., ABB Ltd., Johnson Controls International PLC, The Clorox Co., Mohawk Industries, and Whirlpool Corp. These companies are spread across various subsectors such as containers and packaging, electrical products, industrial specialties, specialty chemicals, home furnishings, and consumer electronics/appliances. 4. **Importance in Retail Sales**: Consumer durables are a significant part of core retail sales data. Their importance is reflected in the fact that personal expenditures on durables exceeded $800 billion in the year 2000, and durables composed approximately 60 percent of aggregate production within the manufacturing sector in the United States. 5. **Sustainability and E-commerce**: The longevity of consumer durables is a crucial aspect of e-commerce sustainability. Online retailers can attract long-term customers by offering high-quality and reliable products, which can lead to increased customer loyalty and higher profit margins. In conclusion, consumer durables are essential for understanding retail sales and their impact on the economy. Their long-lasting nature and role in boosting economic growth make them a critical component of consumer spending.