Industrial Goods Sector


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.

BREAKING DOWN '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.

  1. Transportation Sector

    A category of stocks relating to the transportation of goods ...
  2. Energy Sector

    A category of stocks that relate to producing or supplying energy. ...
  3. Utilities Sector

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

    A category of stocks that accounts for companies involved with ...
  5. Financial Sector

    A category of stocks containing firms that provide financial ...
  6. Sector

    1. An area of the economy in which businesses share the same ...
Related Articles
  1. Economics

    Looking to Invest In Oil? Be Patient

    Learn about the best time to pick a bottom in oil. Oil prices have been destroyed due to excess supply and slowing demand from a slow global economy.
  2. Fundamental Analysis

    Sector Rotation: The Essentials

    We look at how the market signals impending economic cycles and sector performance during each stage.
  3. Mutual Funds & ETFs

    4 Steps To Building A Profitable Portfolio

    This is a step-by-step approach to determining, achieving and maintaining optimal asset allocation.
  4. Mutual Funds & ETFs

    Shifting Focus To Sector Allocation

    Investing in sectors may trump international investments for providing diversification.
  5. Mutual Funds & ETFs

    Major Blunders In Portfolio Construction

    Do you have the best mix of investments? Find out how to make sure.
  6. Bonds & Fixed Income

    Tips For Recession-Proofing Your Portfolio

    Find out what to do when the sun sets on a burgeoning market.
  7. Mutual Funds & ETFs

    Do Focused Funds Provide a Better Outlook?

    Should you diversify or focus? Read on to decide which will work best for you.
  8. Fundamental Analysis

    An Undiscovered Growth Stock for Your Portfolio

    Here's a boring business with the potential to yield big profits for investors.
  9. Stock Analysis

    How Honeywell (HON) Makes its Money

    Honeywell is a true conglomerate in a world of ever-greater specialization. Here's how it generates revenue.
  10. Economics

    What is Industrialization?

    Industrialization is the process of a society, usually a country, transforming itself from an agricultural-based economy to one based on manufacturing. Even then, agricultural output grows as ...
  1. How does the risk of investing in the industrial sector compare to the broader market?

    There is increased risk when investing in the industrial sector compared to the broader market due to high debt loads and ... Read Full Answer >>
  2. What option strategies can I use to earn additional income when investing in the ...

    Investors who are bullish on the industrial sector can use a covered call option strategy to earn additional income from ... Read Full Answer >>
  3. What is the average price-to-book ratio in the aerospace sector?

    Aerospace companies under the industrial goods sector scope could provide value-investing opportunities to investors. However, ... Read Full Answer >>
  4. What debt/equity ratio should I look for when investing in industrial companies?

    The average long-term debt/equity (D/E) ratio that you should expect for companies in the industrial goods sector is 146.44, ... Read Full Answer >>
  5. What developed countries have the largest proportion of industrial companies?

    The developed countries with the largest proportion of global industrial companies have remained relatively stable between ... Read Full Answer >>
  6. What dividend yield is typical for companies in the industrial sector?

    The average dividend yield of the industrial goods sector is approximately 1.71%. The industrial goods sector is a group ... Read Full Answer >>
  7. What are some popular ETFs that track the industrial sector?

    As of April 2015, some of the most popular and best performing exchange-traded funds (ETFs) that track the industrial sector ... Read Full Answer >>
  8. Which stocks in the industrial sector pay the highest dividends?

    In the industrial sector, some of the companies that pay the highest dividends include Highway Holdings Limited, OCI Partners ... Read Full Answer >>
  9. What mutual funds can be used for investing in the industrial sector?

    The industrial goods sector provides investors access to companies that engage in activities such as aerospace and defense, ... Read Full Answer >>
  10. How are industrial goods different from consumer goods?

    Industrial goods are made up of machinery, manufacturing plants and materials, and any other good or component used by other ... Read Full Answer >>
  11. What does it mean to invest in base metals?

    Portfolio diversification is a necessity for most investors; it provides a smart way to spread out the risk associated with ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  2. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  3. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  4. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
  5. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability ...
  6. Discount Bond

    A bond that is issued for less than its par (or face) value, or a bond currently trading for less than its par value in the ...
Trading Center