Consumer Cyclicals

AAA

DEFINITION of 'Consumer Cyclicals'

A category of stocks that rely heavily on the business cycle and economic conditions. Consumer cyclicals include industries such as automotive, housing, entertainment and retail. The category can be further divided into durable and non-durable sections. Durable cyclicals include physical goods such as hardware or vehicles, while non-durables represent items like movies or hotel services.

INVESTOPEDIA EXPLAINS 'Consumer Cyclicals'

The performance of consumer cyclicals is highly related to the state of the economy. They represent goods and services that are not considered necessities, but luxurious purchases. During contractions or recessions, people have less disposable income to spend on consumer cyclicals. When the economy is expanding or booming, the sales of these goods rise as retail and leisure spending increase.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Services Sector ETF

    Exchange-traded funds (ETFs) that invest in either the consumer ...
  3. Consumer Discretionary

    A sector of the economy that consists of businesses that sell ...
  4. Technology Sector

    A category of stocks relating to the research, development and/or ...
  5. Sector Breakdown

    The mix of sectors within a fund or portfolio, typically expressed ...
  6. Consumables

    Goods used by individuals and businesses that must be replaced ...
Related Articles
  1. The Ups And Downs Of Investing In Cyclical ...
    Investing

    The Ups And Downs Of Investing In Cyclical ...

  2. A Guide To Investing In Consumer Staples ...
    Options & Futures

    A Guide To Investing In Consumer Staples ...

  3. Market Cycles: The Key To Maximum Returns
    Active Trading

    Market Cycles: The Key To Maximum Returns

  4. Cyclical Versus Non-Cyclical Stocks
    Options & Futures

    Cyclical Versus Non-Cyclical Stocks

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center