Consumables

What are 'Consumables'

Goods used by individuals and businesses that must be replaced regularly because they wear out or are used up. Consumables can also be defined as the components of an end product that are used up or permanently altered in the process of manufacturing, such as semiconductor wafers and basic chemicals.


BREAKING DOWN 'Consumables'

Stocks of companies that make consumables are considered to be relative safe harbors for equity investors when the economy shows signs of weakness. The reasoning is simple: people will always need to purchase groceries, clothes and gas no matter what is going on in the broad economy.

Many of the items measured in the basket of goods used to calculate the Consumer Price Index (CPI) are consumables; inflation in these items is closely watched because it can lower the discretionary income people have to spend on items such as cars, vacations and entertainment.

RELATED TERMS
  1. Consumer Goods

    Products that are purchased for consumption by the average consumer. ...
  2. Consumer Discretionary

    A sector of the economy that consists of businesses that sell ...
  3. Consumer Goods Sector

    A category of stocks and companies that relate to items purchased ...
  4. Consumer Surplus

    An economic measure of consumer satisfaction, which is calculated ...
  5. Chemicals Industry ETF

    An exchange-traded fund that invests in manufacturers of chemicals. ...
  6. Basket Of Goods

    A relatively fixed set of consumer products and services valued ...
Related Articles
  1. Economics

    Explaining Consumer Discretionary

    Consumer discretionary is a term from economics that refers to the sector of the economy that produces goods and services that are nonessential.
  2. Economics

    What are Consumer Goods?

    Products that are purchased for consumption by the average consumer. Clothing, food, automobiles and jewelry are all examples of consumer goods
  3. Markets

    Trading Semiconductor Chip Stocks

    Historically, mid- and small-cap semiconductor companies have generated momentum because they usually show the most growth potential. Companies within this range are often those that have yet ...
  4. Forex

    The Consumer Price Index

    Find out how this economic measure can help you make key financial decisions.
  5. Financial Advisors

    Will Consumer Spending Save 2015?

    Consumer spending is considered an important number (and it is), but a savvy investor will always look at "why" rather than just "what." You should too.
  6. Economics

    Understanding The Consumer Confidence Index

    We look at this closely watched economic indicator to see what it means and how it's calculated.
  7. Home & Auto

    Where Are Consumers Spending Their Gas Savings?

    The recent plunge in gas prices is putting extra cash in consumers' pockets.
  8. Options & Futures

    The Consumer Price Index: A Friend To Investors

    As a measure of inflation, this index can help you make key financial decisions.
  9. Retirement

    Economic Indicators: Consumer Confidence Index (CCI)

    By Ryan Barnes Release Date: Last Tuesday of the month Release Time: 10am Eastern Standard Time Coverage: Previous ...
  10. Investing Basics

    Consumer Confidence Index

    The Consumer Confidence Index is the result of a monthly survey of 5,000 U.S. households by the Conference Board that measures how optimistic or pessimistic consumers are about the economy's ...
RELATED FAQS
  1. Which economic factors most affect the demand for consumer goods?

    Understand how key economic factors such as inflation, unemployment, interest rates and consumer confidence affect the level ... Read Answer >>
  2. What types of industries are the main consumers of the products of the chemicals ...

    Learn about industries that use products manufactured by chemical companies. Explore common materials used and produced by ... Read Answer >>
  3. What types of risk should an investor consider before investing in the chemicals ...

    Explore the chemicals sector and the risks faced by chemical manufacturing companies. Understand these pressures from an ... Read Answer >>
  4. What's the difference between the substitution effect and price effect?

    Learn how the increase in an item's price affects consumer demand. Explore the differences between the substitution and price ... Read Answer >>
  5. What's the difference between the substitution effect and the income effect?

    Learn the difference between the income effect and the substitution effect in terms of spending money. Predict which direction ... Read Answer >>
  6. How are industrial goods different from consumer goods?

    Understand the difference between industrial goods and consumer goods, and learn the different types of industrial goods ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center