Trough

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DEFINITION of 'Trough'

The stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion.

Trough

INVESTOPEDIA EXPLAINS 'Trough'

In general, the business cycle is said to go through expansion, then the peak, followed by contraction, and then it finally bottoms out with the trough.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Contraction

    A phase of the business cycle in which the economy as a whole ...
  3. Recession

    A significant decline in activity across the economy, lasting ...
  4. Bottom

    The lowest point or price reached by a financial security, commodity, ...
  5. Peak

    The highest point between the end of an economic expansion and ...
  6. Expansion

    The phase of the business cycle when the economy moves from a ...
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