Industrial Goods Sector

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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.

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RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. 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 >>
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