consumption
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Consumption is the purchase and use of goods and services by people to meet their needs and wants. It matters because it drives economic activity, affects resource use and the environment, and reflects how societies organize their production and distribution systems.
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People buying home electronics at a shopping mall in Jakarta, Indonesia Consumption refers to the use of resources to fulfill present needs and desires. It is seen in contrast to investing, which is spending for acquisition of future income. Consumption is a major concept in economics and is also studied in many other social sciences.
Different schools of economists define consumption differently. According to mainstream economists, only the final purchase of newly produced goods and services by individuals for immediate use constitutes consumption, while other types of expenditure – in particular, fixed investment, intermediate consumption, and government spending – are placed in separate categories (see consumer choice). Other economists define consumption much more broadly, as the aggregate of all economic activity that does not entail the design, production and marketing of goods and services (e.g., the selection, adoption, use, disposal and recycling of goods and services).