producer goods

producer goods

noun plural

Definition of PRODUCER GOODS

: goods (as tools and raw materials) used to produce other goods and satisfy human wants only indirectly

First Known Use of PRODUCER GOODS

1948

Rhymes with PRODUCER GOODS

capital goods, consumer goods

producer goods

   (Concise Encyclopedia)

Goods manufactured and used in further manufacturing, processing, or resale. Intermediate goods either become part of the final product or lose their distinct identity in the manufacturing stream, while capital goods are the plant, equipment, and inventories used to produce final products. The contribution of intermediate goods to a country's gross domestic product may be determined through the value-added method, which calculates the amount of value added to the final consumer good at each stage of production. This series of values is summed to estimate the total value of the final product.

Variants of PRODUCER GOODS

producer goods or capital goods or intermediate goods