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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Cyclical Industry  

Definition 1.

A term describing an industry that is sensitive to the business cycle and price changes. Many cyclical industries produce durable goods such as raw materials and heavy equipment.
 

Definition 2.

An industry which is sensitive to business cycles and whose performance is tied to the overall economy, especially interest rates. Many cyclical industries produce durable, commodity-like goods such as raw materials, cars, chemicals, construction, paper, steel, and heavy equipment. Given the durable nature of the goods, such purchases often get postponed in poor economic conditions, but sell especially well in good economic conditions.
 
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