Intermediate goods are products that are used in the production process to produce other goods that are ultimately sold to consumers.
Intermediate goods are sold from industry to industry for resale or the production of other products.
Intermediate goods are usually used directly by the manufacturer, sold to another company to produce another intermediate good, or sold to another company to produce a finished product.
When calculating GDP, economists use the value-added method with intermediate goods to ensure that they are not counted twice - once when buying and once when selling the final good.