Intermediate Goods

Intermediate goods are a type of economic goods used exclusively within a production cycle to create other goods. They fall under the category of indirect goods, forming a distinct subset. What makes intermediate goods unique is their single-use nature in the production process. Depending on the production cycle, some goods may be classified as either intermediate or final goods.

Examples of intermediate goods include raw materials, energy, and semi-finished products designed to be transformed into final goods during production. These goods are an integral part of the production process but are often unfamiliar to end consumers, who tend to focus on the features of the final product rather than how it was made.

Intermediate goods are also known as single-use production goods, as they are fully consumed during a single production cycle (e.g., fuel). They differ from multi-use production goods, often referred to as investment goods, which can be used repeatedly across multiple production cycles (e.g., machinery).