UK Accounting Glossary
A decline in profitability or business activity.
A downward trend, or the beginnings of one; a decline.
A downturn is a worsening of business or economic activity. It may be related to a decline in a stock market, economic cycle, or corporate profits. A downturn may refer to a market, industry or corporation, but generally, it refers to economic conditions at large. A major downturn in a stock market is referred to as a bear market. An economic downturn may be a part of or precede a larger recession, however, a downturn does not necessarily signify prolonged negative growth. Some may consider a downturn a correction to normal operating levels of business, such as the downturn that followed the tech bubble burst in the late 1990s after a decade-long bull market had led to unusually high stock valuations.
Many businesses experience seasonal downturns that cause them to cut back on spending and lay off employees.
The downturn in business-class air travel in the past few years has directly impacted many sectors of the market, not just the airlines themselves.
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.
Definitions for Downturn are sourced/syndicated and enhanced from:
This glossary post was last updated: 9th February 2020.