Consumables

AAA

DEFINITION of '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.


INVESTOPEDIA EXPLAINS '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. Customer Service

    The process of ensuring customer satisfaction with a product ...
  2. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  3. Consumer Staples

    Essential products such as food, beverages, tobacco and household ...
  4. Inflation

    The rate at which the general level of prices for goods and services ...
  5. Discretionary Income

    The amount of an individual's income that is left for spending, ...
  6. Basket Of Goods

    A relatively fixed set of consumer products and services valued ...
Related Articles
  1. Consumer Spending As A Market Indicator
    Markets

    Consumer Spending As A Market Indicator

  2. The Disposable Society: An Expensive ...
    Credit & Loans

    The Disposable Society: An Expensive ...

  3. Cyclical Versus Non-Cyclical Stocks
    Options & Futures

    Cyclical Versus Non-Cyclical Stocks

  4. Evaluating Grocery Store Stocks
    Economics

    Evaluating Grocery Store Stocks

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center