The Consumer Discretionary Sector consists of industries that provide goods and services considered as desirable but non-essentials by customers. Its manufacturing segment includes automotive, household durable goods, textiles & apparel and leisure equipment. Consumers tend to spend more on consumer discretionary products in economic growth phases, which are usually characterized by higher disposable income. Considered as the opposite of consumer staples that produce its clients’ daily necessities, the Consumer Discretionary sector also includes hotels, restaurants and other leisure facilities, media production and services, and consumer retailing and services.
The Consumer Discretionary sector encompasses these industries that tend to be the most sensitive to economic cycles.
Consumer discretionary can be contrasted with consumer staples, which is a classification for companies considered to produce daily necessities.
Companies that supply these types of goods and services are usually either called consumer discretionaries or consumer cyclicals.