ABSTRACT
Philips makes products for consumers, the government and companies. The government purchases systems for communication, security and medical applications. It is not only European parties but also consumers, businesses and governments outside the European union (EU) that buy Philips products. A piece of furniture that is still in the shop awaiting purchase belongs to floating capital. Some consumers spend a lot of money on durable consumer goods while others have a preference for travel. Economic agencies often predict both long-term and short-term changes in consumption on the basis of income developments. Consumer confidence Consumers receive an income. The height of that income together with prices determine how many products they can buy. Consumption growth is also dependent on two other factors, both of which have a small effect on consumption: real interest and capital increase. Real interest is the difference between nominal interest and inflation.
