What share of retail sales do they represent?

What are durable consumer goods?

Consumer durable goods, also called durable goods, are a category of consumer goods that do not wear out quickly and therefore do not need to be purchased frequently. They are part of basic retail sales data and are considered durable because they last at least three years, as defined by the U.S. Bureau of Economic Analysis. Examples include large and small appliances, consumer electronics, furniture and furnishings.

Understanding Consumer Durables

Durable goods get their name because they last relatively long in value. An individual’s wealth is preserved by spending a high proportion of his or her income on durable, investment, or capital goods, because goods retain their economic value for longer periods of time.

Investors, business owners and economists are closely watching spending and new orders for consumer durable goods, a sign of sustainable economic growth. Consumption of durable goods leads gross domestic product (GDP) over the economic cycle. So, if durable goods are above their consumption trend, then GDP will likely be above its trend next quarter as well.

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

Durable consumer goods and non-durable goods

The basic difference between durable and non-durable goods is that the former lasts three years or more, while the latter runs out in less than three years. Additionally, durable goods retain their economic value much longer than non-durable goods.

Durable goods tend to be more expensive than non-durable goods, so people generally invest in them when the economy is good and they feel prosperous.

However, this rule of thumb does not always hold: consumer spending on durable goods increased during the COVID-19 pandemic (after a brief but sharp contraction), which took a toll on the economy. Lockdowns and social distancing have reduced demand for services, while government subsidies to help people weather the crisis have financially increased disposable income.

Consumption categories

Consumer goods are divided into categories of non-durable goods, durable goods and services.

In August 2024, spending on consumer goods was $16.09 trillion.

In August 2024, spending on consumer durable goods was $2.06 trillion. The main growth drivers for this sector were (1) motor vehicles and their parts and (2) recreational goods and vehicles.

Examples of Consumer Durable Goods Companies

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

These companies are divided into sub-sectors of containers and packaging, electrical products, industrial specialties, specialty chemicals, furniture and consumer electronics/appliances.

The essentials

Durable consumer goods are durable goods. The U.S. Bureau of Economic Analysis defines them as having a lifespan of three years or more, unlike nondurable goods, which run out in less than three years.

Consumer durable goods retain their economic value better for longer than nondurable goods, and their sale helps stimulate the U.S. economy. When sales of consumer durable goods increase, it typically forecasts GDP to rise in the next quarter because consumers tend to buy them when they feel prosperous.