Consumption of those goods which are within the boundary line of production, still the value is yet to add to these goods and are not available for use by their final users is called intermediate consumption. These goods are consumed by another firm and are used as intermediate goods in the production process or for further sale. For example, papers purchased by Newspaper agency for printing news. Here, consumption of paper is intermediate consumption. Value of intermediate goods is merged with the value of final goods.
Final consumption refers to consumption of those goods which will not pass any more stages of production process and are ready for use by their final users. Consumers and producers are the final users.