downcycle

American  

[doun-sahy-kuhl] / ˈdaʊnˌsaɪ kəl /

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.

Etymology

Origin of downcycle

First recorded in 1975–80; down ¹ + cycle

Example Sentences

Long-term supply agreements are seen as favorable for memory producers, mitigating downcycle risk.

From Barron's • Apr. 6, 2026

New long-term supply agreements are seen as highly favorable for memory producers, mitigating future downcycle risk.

From Barron's • Apr. 6, 2026

While a downcycle is expected eventually, Curtis said he sees “no clear end in sight” and that the current supply-demand dynamic will likely fall “even more out of balance.”

From MarketWatch • Jan. 30, 2026

So that means, historically, the current downcycle beginning in the second quarter of 2023 should be ending now.

From MarketWatch • Jan. 6, 2026

Global chip sales grew just 0.1% in August, making it the 15th month of a downcycle since June 2021, when sales rose more than 30%, according to Jefferies.

From Reuters • Oct. 7, 2022