A period of general economic decline. Contractions are often part of a business cycle, coming after an expansionary phase and before a recession.

Use contraction in a sentence

The contraction period was hard on us all, but we were all very glad that it was finally coming to an end.

​ Was this Helpful? YES  NO 11 people found this helpful.

My company decided to lower its expenses and not hire as many people because we feared the economy was not growing and was in a period of contraction.

​ Was this Helpful? YES  NO 12 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
irrational exuberance economic cycle