capital goods

plural noun

Economics.

1. machines and tools used in the production of other goods (consumer goods ).

capital goods

plural noun

1. Also called: producer goods. economics goods that are themselves utilized in the production of other goods rather than being sold to consumers Compare consumer goods

capital goods

1. Goods used in the production of commodities; producers' goods. (Compare consumer goods.)

Word History and Origins

Origin of capital goods¹

First recorded in 1895–1900

Example Sentences

Companies report that worries about the U.S.-Canada trade conflict have led to scaled-back spending by corporate customers on services and capital goods, muted levels of household consumption, and a weak outlook for the housing market.

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After around $100 billion in retroactive tax relief was issued in mid-September to companies for investment in capital goods and research and development, a second step of fiscal policy relief hits in February 2026.

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Production declined most strongly in longer-lasting products—durable consumer goods and capital goods, Eurostat said.

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While business approvals rose sharply in the first half, sentiment weakened in the third quarter across manufacturing and services, and slower capital goods imports suggest softer investment growth.

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They reflected the importation of capital goods that fed into America’s rapid industrialization a century ago.

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