Seasonal fluctuations

Definition

Seasonal fluctuations refer to predictable changes in business activity levels that occur regularly throughout the year in response to changes in weather conditions, holidays, and other seasonal factors.

Analogy

Consider how ice cream sales might go up during summer months because it's hot outside, and then drop during winter months when it's cold. That's a seasonal fluctuation.

Related terms

Cyclical Fluctuations: These are changes in business activity that occur over longer periods of time, often tied to economic cycles.

Trend Analysis: This is the practice of collecting information and attempting to spot a pattern or trend in the data.

Demand Forecasting: This is the process of predicting future demand for a product or service based on historical data and trends.