Third, as spending on discretionary items increases, some markets will balloon faster than others.
Investors should think twice about using plastic for discretionary items, but remember that all debts aren't bad debts.
People spent more on discretionary items such as jewelry, books and electronics, than on "blue jeans and coffeemakers, " according to the report.
This is especially the case for discretionary items like clothes and accessories.
To make matters worse, around two-thirds of federal spending goes on pensions or other non-discretionary items, points out Mr Velloso (see chart 2).
They are spending less on discretionary items, and many are struggling to keep their balances down even, ominously, if they have gleaming credit scores.
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That applies even to seemingly discretionary items, such as fashionable clothing.
Emerging markets led the sales growth for Pepsi, offsetting what would have been depressed results in domestic beverage sales as consumers cut back on discretionary items.
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But their expenditures say a different thing, with sales for both essential items like gas and discretionary items like restaurants, motor vehicles, clothing, and furniture recording solid gains.
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Pepsi Bottling struggled during its third-quarter, which ended Sept. 3, as American consumers cut spending on discretionary items like bottled water as the cost of fuel and food rose.
Consumers are spending less on discretionary items like chocolate bars and Hershey competes with giants Nestle, Kraft and Mars, which snapped up gum maker Wrigley in 2008, for those scarce dollars.
Pepsi Bottling Group struggled against the weak economic conditions in the United States as consumers cut spending on discretionary items, including bottled water, as the cost of fuel and other food pressed on their wallets.
There have been some suggestions up on the Hill as recently as this morning that while the talks on the budget have centered mostly on discretionary items so far, some of them -- some people have wanted to move to taxes.
Indeed a temporary spike in gasoline prices affects how much people spend on other discretionary items, but they are not expected to affect the U.S. GDP in a significant way unless they are sustained well into 2012, according to many analysts.
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For example, a person who accurately predicts that the unemployment rate is falling will be in a position to snag cyclical companies like Best Buy before other investors know that consumers may be more willing to spend money on discretionary items like TVs or iPads.
Mr. NARIMAN BEHRAVESH (Chief Economist, Global Insight): I think we'll see people taking some of those savings, if you will, or what they don't need to spend on gasoline, on discretionary items like eating out and, you know, going to a game, going to a concert.
As inflation becomes uncomfortably high this may negatively impact consumer spending, especially on discretionary luxury items.
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Higher price tags on discretionary consumer items like apparel may play a part in combining with higher food and gas prices to put a squeeze on household spending.
Discretionary expenses include items such as vacations, clothing, food and other choices.
Discretionary spending for items like research and marketing is being slashed, workers are being furloughed or offered buyouts, under-performing businesses are being put on the block and acquisitions are being eyed to bolster revenues as demand softens.
It is possible that these industries are performing as well as they are because consumers are really interested in dedicating their discretionary income to items such as market-fresh or organic foods, a new dress, jewelry, or a new piano.
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Several districts noted that consumers had reduced outlays on discretionary and big-ticket items.
Best Buy said the jump was driven by the addition of new stores, expanded investments, the timing of discretionary expenditures and the impact of other nonrecurring items, as well as fluctuations in foreign currency rates.
While it is easy to argue that all consumers will continue to buy staple items no matter what, the outlook for discretionary spending is less clear.
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