Consumer Goods Sector

DEFINITION of 'Consumer Goods Sector'

A category of stocks and companies that relate to items purchased by individuals rather than by manufacturers and industries. This sector includes companies involved with food production, packaged goods, clothing, beverages, automobiles and electronics.

BREAKING DOWN 'Consumer Goods Sector'

Performance in the consumer goods sector depends heavily on consumer behavior. When the economy grows the sector will see an increased demand for higher-end products. When the economy shrinks there is an increased demand for value products. While some product types, such as food, are necessary, others, such as automobiles, are considered luxury items.

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