Purchasing Reduction
Definition
Purchasing reduction refers to a decrease in buying activity, often as a result of decreased consumer confidence or economic downturns.
Analogy
Think about your own shopping habits. If you suddenly had less money, you'd probably cut back on non-essential purchases like new clothes or video games. That's purchasing reduction on an individual level.
Related terms
Consumer Confidence Index (CCI): A statistical measure of consumers' feelings about current and future economic conditions, used as an indicator of the overall state of the economy.
Recession: A period of temporary economic decline during which trade and industrial activity are reduced.
Austerity Measures: Policies aimed at reducing government budget deficits through spending cuts, tax increases, or both.
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