The Consumer Discretionary Sector includes companies that sell non-essential goods and services. This sector encompasses a wide range of industries, such as retail, automotive, entertainment, and leisure. Examples of businesses in this sector include clothing stores, restaurants, and automobile manufacturers. Consumer spending in this sector often fluctuates based on economic conditions, as people tend to spend more on discretionary items when they have higher disposable income. Investors often monitor the Consumer Discretionary Sector as it can indicate overall economic health. When consumers feel confident about their financial situation, they are more likely to spend on luxury items and experiences. Conversely, during economic downturns, spending in this sector typically decreases, affecting the performance of companies within it.