Define: Business Cycle

UK Accounting Glossary

Definition: Business Cycle

Quick Summary of Business Cycle

Period (usually 12 months) during which the peaks and troughs of activity of a business form a pattern which is repeated on a regular basis.

What is the dictionary definition of Business Cycle?

Dictionary Definition


Full Definition of Business Cycle

In economics; the business cycle, also known as the trade cycle or economic cycle, is the downward and upward movement of gross domestic product around its long-term growth trend. The length of a business cycle is the period of time containing a single boom and contraction in sequence.


Business Cycle FAQ's

What are the 5 stages of the business cycle?

The two main phases in a business cycle that are prosperity and depression. The other phases: expansion, peak, trough and recovery are intermediary phases.

What is the peak in a business cycle?

peak is the highest point between the end of an economic expansion and the beginning of a contraction in a business cycle. The peak of the cycle refers to the last month before several key economic indicators,  (employment and new housing starts), begins to fall.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

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Modern Language Association (MLA):
Business Cycle. Payroll & Accounting Heaven Ltd. November 17, 2019
Chicago Manual of Style (CMS):
Business Cycle. Payroll & Accounting Heaven Ltd. (accessed: November 17, 2019).
American Psychological Association (APA):
Business Cycle. Retrieved November 17, 2019, from website:

Definition Sources

Definitions for Business Cycle are sourced/syndicated from:

This glossary post was last updated: 23rd December 2018.