what are capital goods 
capital goods are tangible assets such as buildings machinery and equipment used to produce consumer goods or services capital goods are durable items and differ from consumer goods and services which are the end product of production and manufacturing investopedia zoe hansentypes of capital goodscapital goods are the tangible assets used to produce products to create finished products however capital goods are not limited to common fixed assets such as machinery and manufacturing equipment the industrial electronics industry produces devices which are capital goods that range from small wire harness assemblies to air purifying respirators and high resolution digital imaging systems capital goods are also produced for service businesses hair clippers used by hairstylists paint brushes used by painters and musical instruments played by musicians are among the many capital goods purchased by service providers capital goods also known as plant property and equipment are treated as fixed assets in accounting capital goods vs consumer goodsconsumer goods are the finished products that consumers buy after the production process although consumer goods have different classifications examples of consumer goods include milk appliances and clothes capital goods are not commonly sold to consumers but are used to produce other goods which are sold to consumers however some capital goods can be considered consumer goods such as airplanes used by airlines and some consumers examples of capital goods