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. Markets

    Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  2. Credit & Loans

    The Disposable Society: An Expensive Place To Live

    Resisting the trend toward consumption will boost your bottom line and bolster the environment.
  3. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  4. Economics

    Evaluating Grocery Store Stocks

    Retail grocers are no longer a homogeneous group selling products in the same manner. Find out how to evaluate these companies.
  5. Budgeting

    The Momentum, And Methods, Behind Walmart's Model

    Walmart's success stems from low costs, which are possible through specific supply and distribution strategies, and are passed to consumers as low prices.
  6. Trading Strategies

    Has Coca-Cola Lost Its Pop?

    Coca-Cola has been a name synonymous with sustainable success. This hasn’t just pertained to consumers but investors as well. But are times changing?
  7. Investing Basics

    Are dividend payout ratios different in different economic sectors?

    Discover which economic sectors have traditionally higher or lower dividend payout ratios and the various factors that determine payout ratios.
  8. Chart Advisor

    Profit From Holiday Spending With This ETF

    As Americans finish purchasing the last of their holiday gifts, the consumer discretionary sector will continue to be one of the primary beneficiaries.
  9. Economics

    ShopRite: Supermarket Model for Modern Shoppers?

    ShopRite is a supermarket model that stands out amid the everyday, widespread, corporate-controlled supermarket chains. But does it meet customers' needs?
  10. Chart Advisor

    'Tis The Season For Food And Beverage Stocks

    The holidays tend to be a gift to investors in defensive consumer stocks. Here's a food and beverage sector ETF (and its top holdings) to consider

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  6. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
Trading Center