What are discretionary products?
Discretionary products are any goods that are not necessary and thus not required to enjoy basic living conditions. In contrast, those products that are necessities of life such as food, drugs, medical supplies, hygiene or personal care products, often classified as consumer staple.
What does consumer discretionary sector mean?
The consumer discretionary sector comprises businesses that sell nonessential products and services that consumers may avoid without any major consequences to their well-being.
What are examples of discretionary spending?
Some common discretionary items include:
- Vacations and travel expenses.
- Alcohol and tobacco.
- Restaurants and other entertainment-related expenses.
- Coffee and specialty beverages.
- Hobby and sports-related expenses, such as crafting, sewing, and gym memberships.
What are two examples of discretionary spending?
Some examples of areas funded by discretionary spending are national defense, foreign aid, education and transportation.
What is consumer durable goods?
Durables, also known as durable goods or consumer durables, are a category of consumer goods that do not wear out quickly, and therefore do not have to be purchased frequently. They are a part of core retail sales data and are known as “durable goods” because they tend to last for at least three years.
What is consumer Discretionary example?
Examples of consumer discretionary products 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.
What are the two categories of discretionary spending?
Totaling about one-third of the federal budget, discretionary spending programs can be further divided into two categories: defense and non-defense.
Why did discretionary spending decrease?
In 2012 and 2013, discretionary outlays declined not only relative to GDP but also in nominal terms. That decline stemmed largely from a waning of spending from ARRA, reduced funding for military operations in Afghanistan and Iraq, and constraints imposed by the Budget Control Act of 2011.