Capital Goods Sector

外汇网2021-06-19 13:31:48 59

A category of stocks related to the manufacture or distribution of goods. The sector is perse, containing companies that manufacture machinery used to create capital goods, electrical equipment, aerospace and defense, engineering and construction projects.

Also referred to as the "industrials sector".

Taobiz explains Capital Goods Sector

Performance in the capital goods sector is sensitive to fluctuations in the business cycle. Because it relies heavily on manufacturing, the sector does well when the economy is booming or expanding. As economic conditions worsen, the demand for capital goods drops off, usually lowering the prices of stocks in the sector.

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