Downturn

Downturn means a period when economic or business conditions become weaker. In simple terms, a downturn happens when activity, sales, jobs, or confidence decline. Downturns are important because they can hurt company profits, reduce hiring, lower investment, and make consumers more cautious. A downturn can be mild or severe depending on how broad and long it becomes. For example, if an industry sees falling sales, lower demand, and layoffs, that industry may be in a downturn. A downturn is not always the same as a recession. A recession is a broad economic decline, while a downturn can refer to a specific sector, market, company, or shorter period.