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The performance of consumer cyclicals is closely tied to economic conditions, featuring goods and services deemed non-essential or luxury items. During economic expansions or booms, sales of these goods typically increase, reflecting heightened retail and leisure spending. Understanding these dynamics can help investors and industry stakeholders gauge potential opportunities and risks within the consumer cyclical market, making it crucial to monitor economic indicators that influence consumer behavior and spending patterns.
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1. Consumer CyclicalSector Review Lauren Rhea
October 15, 2009
2. What is a Cyclical 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.
When the economy is expanding or booming, the sales of these goods rise as retail and leisure spending increase.