UK Accounting Glossary
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.
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.
The two main phases in a business cycle that are prosperity and depression. The other phases: expansion, peak, trough and recovery are intermediary phases.
A 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.
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This glossary post was last updated: 23rd December 2018.