Industrial Goods Sector

AAA

DEFINITION of 'Industrial Goods Sector'

A category of stocks that relate to producing goods used in construction and manufacturing. This sector includes companies involved with aerospace and defense, industrial machinery, tools, lumber production, construction, cement and metal fabrication.

INVESTOPEDIA EXPLAINS 'Industrial Goods Sector'

Performance in the industrial goods sector is largely driven by supply and demand for building construction - residential, commercial and industrial - as well as the demand for manufactured products. When the economy contracts and consumers save more and spend less, activity in this sector drops because companies will postpone expansion and produce fewer goods.

The performance of the industrial goods sector closely follows the performance of the S&P 500.

RELATED TERMS
  1. Financial Sector

    A category of stocks containing firms that provide financial ...
  2. Basic Materials Sector

    A category of stocks that accounts for companies involved with ...
  3. Energy Sector

    A category of stocks that relate to producing or supplying energy. ...
  4. Transportation Sector

    A category of stocks relating to the transportation of goods ...
  5. Capital Goods Sector

    A category of stocks related to the manufacture or distribution ...
  6. Technology Sector

    A category of stocks relating to the research, development and/or ...
Related Articles
  1. Sector Rotation: The Essentials
    Fundamental Analysis

    Sector Rotation: The Essentials

  2. 4 Steps To Building A Profitable Portfolio
    Mutual Funds & ETFs

    4 Steps To Building A Profitable Portfolio

  3. Shifting Focus To Sector Allocation
    Mutual Funds & ETFs

    Shifting Focus To Sector Allocation

  4. Major Blunders In Portfolio Construction
    Mutual Funds & ETFs

    Major Blunders In Portfolio Construction

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center