Back to glossary
FINANCIAL TERMS
Weakness
Description
Weakness means signs that an economy, market, company, or sector is becoming less strong.
In simple terms, weakness shows that performance or activity is getting worse.
Weakness is important because it can warn investors, businesses, and policymakers that conditions may be deteriorating. Weakness can appear in slower sales, lower profits, weaker hiring, falling confidence, or declining demand.
For example, if retail sales fall and job growth slows, analysts may say there is weakness in the economy.
Weakness is not the same as collapse. Weakness can be mild or temporary, while a collapse means a much more severe breakdown.