The materials sector includes companies engaged in mining and metal refining, chemical products, and forestry products. Within this sector are the companies that supply most of the materials used in construction. That makes the companies and their stocks sensitive to changes in the business cycle. They tend to thrive when the economy is strong.

• The materials sector is made up of companies involved in the discovery, development, and processing of raw materials, from gold and oil to timber.
• The raw materials they finish are sold for use in nearly all other industry sectors.
• The sector is particularly sensitive to the ups and downs of the economy.