downcycle

[doun-sahy-kuhl]

noun

1. Economics.,  a period or cycle during which business activity or profitability is at a low point.

   Energy companies are facing increased cost pressure to get through the current market downcycle.

verb (used with object)

1. to process (used goods or waste material) in order to produce something of lesser quality because the original material cannot be recycled into something of the same or better quality.

   The plastic bottles can't be reused, but some companies downcycle them into bags.

Word History and Origins

Origin of downcycle¹

First recorded in 1975–80; down ¹ + cycle

Example Sentences

Analysts at Taiwan's Fubon Investment said they expected the second quarter to be the bottom of the current downcycle but that while the situation should improve in the third quarter, it would be weaker than normal given continued inventory build ups that are still being worked through.

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"The results/guidance confirms the team is moving past the trough of this downcycle," J.P.

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"Apart from the expected slowdown in the advanced economies, the electronics downcycle is likely to be deeper and more prolonged than earlier projected," Lim told a press conference.

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The current memory chip downcycle that began last year is expected to worsen in the current quarter, analysts said.

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"We still think the industry is heading for its deepest downcycle in a decade, thanks to high supply chain inventories and falling end demand," Jefferies analysts said.

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