What is an example of a cyclical industry?

For example, the airline industry is a fairly cyclical industry. In good economic times, people have more disposable income, so they are more willing to take vacations and make use of air travel. Conversely, during bad economic times, people are much more cautious about spending.

How cyclical industries work?

In this article, we discuss how cyclical industries work and list some examples of cyclical industries. 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.

How do you know if an industry is cyclical?

To determine whether an industry is cyclical or not, without diving into the financial statements of a company, a key starting point would be to understand consumer purchasing behaviors. An industry is likely to be cyclical if consumers materially limit the amount of goods and services purchased from that industry during an economic downturn.