New Delhi, Aug. 21 -- The consumer discretionary sector witnessed continued moderation in the first quarter of the current financial year, but hopes for a recovery are pinned on the upcoming festive season, according to a report by Systematix Research.

The report stated "Q1FY26 marks continued moderation, hope rests on festive season ahead" highlighted that the broader consumption environment in the first quarter of FY26 reflected signs of moderation with muted demand conditions persisting.

While demand remained weak in urban discretionary categories, Tier 2 and Tier 3 towns managed to outperform. Overall consumption trends during the quarter showed a mixed performance across different categories.

The consumer discretionary sector incl...