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What is consumer discretionary?

Consumer discretionary is an economic sector classification of non-essential consumer goods and services. The sector, its industries, and individual companies are watched by analysts and investors as an indicator of economic growth or slowdown.

What are consumer discretionary goods?

You can think of consumer discretionary goods as something people want, such as restaurant meals or vacations. However, when consumers pinch pennies in a weak economy, they continue spending on necessary consumer staples, such as food and household cleaning supplies.

What are examples of consumer discretionary products and services?

Examples of consumer discretionary products and services can include durable goods, high-end apparel, entertainment, leisure activities, and automobiles. Companies that supply these types of goods and services are usually either called consumer discretionaries or consumer cyclicals .

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