Sluggish Economy

AAA

DEFINITION of 'Sluggish Economy'

A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts.

INVESTOPEDIA EXPLAINS 'Sluggish Economy'

When the economy is in a sluggish state, it is generally harmful for a business since consumers and other businesses are less likely to purchase its products. A sluggish economy also has a negative effect on the labor market as businesses are less willing to hire more staff in times of weak economic growth.

Financial media often use the term "sluggish economy". For example, you will often see headlines like "Economy Sluggish due to Rising Oil Prices."

RELATED TERMS
  1. Housing Starts

    The number of new residential construction projects that have ...
  2. Economic Growth Rate

    A measure of economic growth from one period to another in percentage ...
  3. Economic Growth

    An increase in the capacity of an economy to produce goods and ...
  4. Economy

    The large set of inter-related economic production and consumption ...
  5. Freelance Economy

    A freelance economy revolves around hiring self-employed workers ...
  6. Peer-to-Peer (P2P) Economy

    A Peer-to-Peer, or P2P, Economy is a decentralized model whereby ...
RELATED FAQS
  1. When phase of the economic cycle tends to be strongest for companies in the retail ...

    The economic cycle has four phases. The expansionary phase occurs when the economy is growing. During this phase, cyclical ... Read Full Answer >>
  2. What is the average length of the boom and bust cycle in the U.S. economy?

    The boom and bust, better defined as expansion and contraction, business cycles of the U.S. economy averaged 38.7 months ... Read Full Answer >>
  3. During what stage of the economic cycle should I invest in the telecommunications ...

    Later stages of the economic cycle are the best time to invest in the telecommunications sector. Late stages are characterized ... Read Full Answer >>
  4. What can demographics tell us about present and future consumption trends and economic ...

    Demographics gives insight into future population growth, which can reveal present and future consumption trends and economic ... Read Full Answer >>
  5. What role does credit play in the economic boom and bust cycle?

    A great deal of economic literature has been written about the nature of economic cycles, and it has usually led to even ... Read Full Answer >>
  6. What are the typical factors that cause the economy to repeat a boom and bust cycle?

    Not all experts agree about the causes of the business cycle. Most seem to agree that repeatable booms and busts result from ... Read Full Answer >>
Related Articles
  1. Active Trading Fundamentals

    Recession: What Does It Mean To Investors?

    Understanding the business cycle and your own investment style can help you cope with an economic decline.
  2. Markets

    A Guide To Conference Board Indicators

    Learn to put the CB data sets to trading use. Each chapter takes you through one of the board's benchmark indicators or surveys, their significance and their applications.
  3. Retirement

    Economic Indicators To Know

    The economy has a large impact on the market. Learn how to interpret the most important reports.
  4. Professionals

    Active or Passive ETFs: Which is Better?

    What will be more popular in the near future: active or passive ETFs?
  5. Economics

    What Are The 5 Hottest Emerging Industries In 2015?

    These five industries are poised to explode in 2015.
  6. Stock Analysis

    Invest Here Now: The Hottest Sectors of 2014-15

    These 10 industries have made investors a lot of money over the past year. Is there still room to run?
  7. Stock Analysis

    China: Why Big Investors are Turning Into Bears

    More hedge fund managers and economists are beginning to transition from bull to bear when it comes to China. Here's why.
  8. Mutual Funds & ETFs

    ETF Analysis: Market Vectors Russia

    Learn about Market Vectors Russia ETF, its top holdings, as well as cyclical and political risks associated with investing in the Russian market.
  9. Stock Analysis

    Is Apple's (AAPL) Selloff Justifiable or Panic?

    Apple has minted millionaires over the past decade, but there is one current risk that might soon bring this to an end at least temporarily.
  10. Professionals

    The Most Popular ETFs with Financial Advisors

    Financial advisors might continue to perform well by holding these popular ETFs, but time is limited.

You May Also Like

Hot Definitions
  1. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  2. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  3. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  4. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  5. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  6. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!