| Definition |
Refers to the fluctuations in business activity within the economy over time. |
Broad term that encompasses the overall cyclical movement of an economy. |
| Scope |
Focuses more on industries, production, and business performance. |
Includes business activity, employment, GDP, inflation, and monetary trends. |
| Phases |
Expansion, Peak, Contraction (Recession), Trough. |
Same phases – Expansion, Peak, Recession, Recovery – but viewed at a macro level. |
| Focus Level |
Micro to meso-level (industries or firms). |
Macro-level (entire economy). |
| Causes |
Changes in demand, investment, and supply within specific sectors. |
Broader factors like fiscal policy, interest rates, inflation, and external shocks. |
| Impact |
Directly impacts company profits, hiring, and production decisions. |
Affects GDP, unemployment rates, inflation, and national income. |
| Measurement Tools |
Business sentiment indexes, industrial output, company earnings. |
GDP growth, CPI, employment data, central bank indicators. |
| Frequency |
Can vary by industry; some industries are more cyclical than others. |
Occurs at national or global scale over time, typically in longer cycles. |
| Example |
A boom in real estate followed by a slowdown due to oversupply. |
The 2008 financial crisis followed by years of economic recovery. |
| Duration |
Short to medium term (typically 3–10 years). |
Can span longer periods and reflect structural economic changes. |
| Influence |
Heavily influenced by consumer behavior and business investment. |
Influenced by national policies, global trends, and monetary conditions. |
| Who Uses It |
Business analysts, managers, industry experts. |
Economists, policymakers, central banks. |
| Relation |
Part of the broader economic cycle. |
Includes business cycle as a component. |
business cycle vs economic cycle