Capital goods help businesses produce consumer goods and services more efficiently over time.

Key characteristics of capital goods:

• Durability: Capital goods tend to have a long lifespan and are used repeatedly in the production process.
• Non-consumable: Unlike consumer goods (e.g., food, clothing), capital goods are not consumed or exhausted in one use.
• Facilitate production: They enable the production of consumer goods or other capital goods.
• Investment goods: Companies and economies invest in capital goods to improve productivity and enhance future production.

Examples of capital goods:

• Machinery (e.g., factory equipment, industrial robots)
• Tools and equipment (e.g., construction tools, machine tools)
• Buildings and factories
• Vehicles used for business (e.g., trucks, ships, planes for freight)
• Infrastructure (e.g., roads, bridges, power plants)

In contrast, consumer goods are goods that are purchased by individuals for personal use (e.g., smartphones, clothing, food). Capital goods, by enabling production, indirectly support the availability of these consumer goods.