Pent Up Demand

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DEFINITION of 'Pent Up Demand'

When the demand for a service or product is unusually strong. Pent up demand is used by economists to describe the general public's strong return to consumerism following a period of decreased spending.

BREAKING DOWN 'Pent Up Demand'

Pent up demand is often seen immediately following a recession or depression, where consumers have built their savings or held off on purchases due an the uncertain economic climate. Quite often, pent up demand accelerates the economic recovery period immediately following an economic downturn thanks to a sudden increase in consumer confidence and spending.

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