[This is part of the series: The Complete Guide To Economics 101.]
What are intermediate products?
Intermediate Products are goods and services in an economy that are sold for intermediate use.
For instance, a cotton trader that is selling raw cotton to a textile mill.
The textile mill will sell raw clothing to a retailer, and a retailer will sell finished clothing to a consumer.
So, a cotton trader selling raw cotton to a textile mill would be a clear example of an intermediate product.
Intermediate products are obviously not the same as goods and services used for final output.