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October 21, 2025, 05:29:43 pm

Author Topic: Difference between seasonal and cyclical trends (visually)  (Read 25344 times)  Share 

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kddee

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Difference between seasonal and cyclical trends (visually)
« on: March 21, 2012, 10:59:53 pm »
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Can anyone tell me the difference?

Planck's constant

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Re: Difference between seasonal and cyclical trends (visually)
« Reply #1 on: March 22, 2012, 12:53:11 am »
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Can anyone tell me the difference?

Both cyclical and seasonal have 'peak-and-trough' patterns.
The difference is that in seasonal trends the period between succesive peaks (or troughs) is constant (eg soft drink sales will show a spike EVERY summer and a trough EVERY winter).
But in cyclical trends the distance between successive peaks is irregular (eg 5 years of economic growth, followed by 2 years of economic recession, followed be 7 years of economic growth followed by 1 year of economic recession etc)

ILiekMudkipz

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Re: Difference between seasonal and cyclical trends (visually)
« Reply #2 on: March 29, 2012, 08:54:12 pm »
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Basicly, they both go up and down, but seasonal trends have the same time span between each peak, whereas cyclic trends just go up and down randomly.

99.96

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Re: Difference between seasonal and cyclical trends (visually)
« Reply #3 on: March 30, 2012, 05:17:18 pm »
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The key difference is that seasonal trends, as the name implies, will show specific patterns periodically.
Eg, Consumer spending may show a peak around Christmas time every year making it a seasonal trend.
But for things like the share price of apple, it may peak whenever apple realise a new product and decrease a while after its release, making it cyclic because there is no fixed period between peaks and troughs.

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