*Research Scholar, Department of Commerce, Manonmaniam Sundaranar University, Tirunelveli. Tamilnadu, India
**Professor & Head, Department of Commerce, Manonmaniam Sundaranar University, Tirunelveli, Tamilnadu, India
Online published on 12 July, 2019.
Durable consumption goods and private capital investment factor into durables trade. Durable goods yield service or utility over time. Examples include such capital goods as machinery and such consumer goods as automobiles, appliances and big-screen TVs. When the economy is expected to turn sour, households can put off purchases of consumer durables but can't easily delay purchases of food and other goods for quick consumption.
When inventories start to grow, firms don't expand capacity, and they cancel or postpone new investments. Thus, demand is generally much more volatile for durable consumer goods and investment than for nondurable goods.
