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The Business Cycle in Pictures
Using images to reinforce the different stages of the business cycle
The Business CycleIs like the changing seasons. Summer: Boom Flowers are blooming, people are happier (he linked this to business confidence), fewer leaves on the ground (low unemployment) Autumn: Recession Trees turn brown, more leaves on the ground (rising unemployment), nights become darker, moods change (lower confidence) Winter: Slump Lots of leaves on the ground (high unemployment), people are less happy (lower confidence) Spring: RecoveryGreen shoots!
A: The number of new housing starts begins to fall
B: There are more unfilled job vacancies
C: Increasing hours of overtime
D: Rising homelessness
H: Consumers hit by delays in product
delivery
K: Share prices hit by rise in number of company profit
warnings
E: Rising demand for steel
M: Rising real income
L: Rising lipstick sales
I: Home delivered pizza becomes more popular
J: Rising business class air revenues
G: Car plants decide to reduce the number of
shifts
F: Long-term unemployment
reaches new high
N. Government announces a fall in trade deficit due to
decline in imports
O: Supply of rented property exceeds demand
P: Brick manufacturers report a rise in unsold stocks Q: McDonald’s holds prices despite
rise in costs
T: The cost of shipping goods
around the world starts to rise
U: More building skips start appearing on the
streets
V: Sales of milk chocolate start to
decline
X: Oil refineries report a reduction in crude oil
stocks
Y: More companies attempt to introduce
wage freezes
W: Shops delivering lunchtime sandwiches
to offices raise their prices because of strong demand
R: Imports of sewing machines rise
S: Banks relax credit rules
Z: Rising government
spending
Quarterly value of real GDP
Tracking the UK Economic Cycle
Source: Reuters EcoWin
86 88 90 92 94 96 98 00 02 04 06 08 10 12
billio
ns
175
200
225
250
275
300
325
350
GB
P (
billio
ns)
175
200
225
250
275
300
325
350
Real GDP
TimeThe economic cycle in pictures
A B C D E F
G H I J K L
M N O P Q R
T U V W X Y Z
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