1. A branch of the economy or industry that is experiencing a decline in growth, revenue, or activity
The automotive sector is in contraction due to decreased consumer demand.
O setor automotivo está em retração devido à diminuição da demanda dos consumidores.
2. An economic segment showing negative growth or reduction in business activity
Several sectors in retraction have led to job losses this quarter.
Vários setores em retração levaram a perdas de empregos neste trimestre.