What is the Consumer Discretionary sector?

The consumer discretionary sector is comprised of businesses that sell non-essential goods and services . These are products that consumers can usually live without and don't necessarily need in their day-to-day lives. They can cut back on them or forego them altogether without any major consequences to their well-being.

Which companies fall into the Consumer Discretionary sector?

Some of the companies that fall into the consumer discretionary sector include McDonald's ( MCD ), Starbucks ( SBUX ), La-Z-Boy ( LZB ), Whirlpool ( WHR ), Walt Disney ( DIS ), Carnival Corp. ( CCL ), Nike ( NKE ), and Tesla ( TSLA ). Consumer confidence plays a central role in the consumer discretionary sector.

What is a consumer discretionary product?

Consumer discretionary is a term that describes goods and services that consumers consider non-essential but desirable if their available income is sufficient to purchase them. Examples of consumer discretionary products and services can include durable goods, high-end apparel, entertainment, leisure activities, and automobiles.