Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer nondurables?

The business cycle influences the productivity and employment in capital goods firms and consumer durable product firms significantly compared to firms manufacturing consumer nondurables because the amount and standard of nondurable purchases reduce but not as much as the capital good and consumer durables purchases. This is because firms can always postpone buying capital goods. Moreover, capital goods investment reduces significantly during the recession.

On the other hand, nondurable consumer products firms are usually enclosed from the most intense recession consequences. Individuals typically find it unavoidable to spend on required health and legal services. This also applies to food and clothing.