feedback
survey

Industry Business Cycles

This graph shows the life cycle stage of an industry within key stages; growth, maturity or decline. When an industry is growing faster than the economy and business counts are growing, the industry is considered to be in the “growth” stage of the business cycle. When an industry is growing faster than the economy but business counts are decreasing, it is considered to be in the “maturity” stage. When an industry is growing slower than the economy, it is considered to be in the “decline” phase of the business cycle.

The difference between GVA and GDP measures the change of an industry's share of the economy. If an industry is growing faster than the economy, it will acquire a greater share of the economy and the result will be positive.  If an industry is growing slower than the economy, it will acquire a smaller share of the economy and the result will be negative.

Business counts growth measures the change in concentration of economic activity. If business counts growth is positive, the economic activity is being shared among more firms and is less concentrated. If business counts growth is negative, the economic activity is being shared among less firms and is more concentrated.

The relationship between relative growth in share of the economy and business counts growth can be tracked by selecting an industry (click it on the graph or select in the filter) and clicking the play button on the bottom left hand corner.

To see further detail on the life cycles of industries see the IBIS World Industry Reports available for industry subdivisions.

Download CSV Data (71kb)