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. Economic Growth Rate

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

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

    The large set of inter-related economic production and consumption ...
  4. Housing Starts

    The number of new residential construction projects that have ...
  5. Marginal Propensity To Invest

    The ratio of change in investment to change in income. The marginal ...
  6. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
Related Articles
  1. Recession: What Does It Mean To Investors?
    Active Trading Fundamentals

    Recession: What Does It Mean To Investors?

  2. A Guide To Conference Board Indicators
    Markets

    A Guide To Conference Board Indicators

  3. Economic Indicators To Know
    Retirement

    Economic Indicators To Know

  4. Sector Rotation: The Essentials
    Fundamental Analysis

    Sector Rotation: The Essentials

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center