What are cyclical industries?

A cyclical industry is a type of organization where the business cycle has a large and direct effect on its operations and strategy. These industries typically grow during upward trends in the business cycle and decline during economic downturns.

What is a cyclical business cycle?

When the economy is growing or expanding, these companies grow, and when the economy is in a recession or depression, they decline. An industry classified as cyclical is sensitive to the business cycle, which results in higher revenues during periods of economic expansion, but lower revenues during periods of economic contraction and downturn.

What is a cyclical economy?

These industries have a cyclical pattern that begins with a growth phase and ends with a recession. During these phases, many businesses enter a sector to capitalize on the current market conditions and then leave or close because of a reduction in demand or a change in the economy.

Do cyclical industries go through a boom to bust cycle?

Certain cyclical industries go through a boom to bust cycle regularly. These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.