Capital Goods Sector

AAA

DEFINITION of 'Capital Goods Sector'

A category of stocks related to the manufacture or distribution of goods. The sector is diverse, containing companies that manufacture machinery used to create capital goods, electrical equipment, aerospace and defense, engineering and construction projects.

Also referred to as the "industrials sector".

INVESTOPEDIA EXPLAINS 'Capital Goods Sector'

Performance in the capital goods sector is sensitive to fluctuations in the business cycle. Because it relies heavily on manufacturing, the sector does well when the economy is booming or expanding. As economic conditions worsen, the demand for capital goods drops off, usually lowering the prices of stocks in the sector.

RELATED TERMS
  1. Industrial Goods Sector

    A category of stocks that relate to producing goods used in construction ...
  2. Core Durable Goods Orders

    New orders for U.S. core durable goods, which are the total durable ...
  3. Risk Analysis

    The study of the underlying uncertainty of a given course of ...
  4. Gator

    The name of a software company best known for its adware products. ...
  5. Utilities Sector

    A category of stocks for utilities such as gas and power. The ...
  6. Basic Materials Sector

    A category of stocks that accounts for companies involved with ...
Related Articles
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. Sector Rotation: The Essentials
    Fundamental Analysis

    Sector Rotation: The Essentials

  3. The Stock Market: A Look Back
    Economics

    The Stock Market: A Look Back

  4. A Guide To Conference Board Indicators
    Markets

    A Guide To Conference Board Indicators

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center