Consumerdiscretionaryreferstoasectoroftheeconomythatincludescompaniessellingnon-essentialgoodsandservices.Theseareproductsandservicesthatconsumersmaypurchasewhentheyhaveextraincome,suchasluxuryitems,entertainment,andtravel.Examplesincluderetail,automotive,media,andleisureindustries.Theperformanceofthissectoriscloselytiedtoeconomicconditions,asdemandtendstoriseduringperiodsofeconomicgrowthanddeclineduringdownturns.Investorsoftenwatchconsumerdiscretionarystocksasanindicatorofconsumerconfidenceandspendingtrends.
