Business Cycles and Industrial Output

Business cycles refer to the fluctuations in economic activity over time, characterized by periods of expansion (growth) and contraction (recession). These cycles impact industrial output, which is the production of goods in the industrial sector, including manufacturing and construction. During expansions, businesses typically invest more, leading to higher output, employment, and consumer spending. Conversely, during recessions, industrial output often decreases due to reduced demand, leading to layoffs and lower investment. Understanding these cycles is crucial for assessing economic health and making informed business decisions in a global context.