What Are Intermediate Goods?

Intermediate products refer to items and labor, such as raw materials, fuel, etc., for reprocessing or resale for the production of other products. Intermediate products are collectively referred to as products that are in the process of processing before they become final products in a series of production processes from the processing of primary products to the provision of final consumption.

Intermediate products

Intermediate products refer to items and labor, such as raw materials, fuel, etc., for reprocessing or resale for the production of other products. Intermediate products refer to a product from

If cotton is a primary product, the cotton yarn,

The number of intermediate products mainly depends on the industrial production scale and product production cycle. The larger the scale of industrial production, the longer the product production cycle, and the more intermediate products. In the input-output table of the national economy, intermediate products are composed of labor objects belonging to productive consumption in each sector. The intermediate products of a sector equal the total product of the sector minus its final product. It is an important basis for arranging the national economic plan and the production of various products, so as to maintain a reasonable proportional relationship between various departments. Because intermediate products occupy a large amount of materials and funds, and cannot directly meet the needs of final consumption, it is generally required to reduce their proportion in the entire social product as much as possible.