Consumer Discretionary – Definition and Examples

By Investment U Research Team Consumer discretionary is a term for goods and services that are non-essential products. For example, rice and wheat would be considered essential items. Meanwhile, cars and streaming services are non-essential products.
Consumers will only buy non-essential items when they have enough income left at the end of each month to afford those products. While consumers might want new clothes or durable goods, they will avoid buying them if they are unable to financially. These type of products and services are called consumer cyclicals or consumer discretionaries.
Consumer discretionaries are important because they show the strength of the economy. In total, consumer spending …read more