Economic climate

The economic climate means the overall economic conditions in which businesses operate. A business cannot control national interest rates or employment levels, but these conditions can change its costs, its customers’ spending and its opportunities to grow.

The economic climate is the overall state of the economy: how much is being produced, how many people have jobs, what they earn and how prices are changing. An individual business has little control over these conditions, but they influence its customers, suppliers, workers and finances.

The economic climate means the overall economic conditions in which a business operates. A business cannot control whether consumers across the country earn more or whether unemployment rises, but it can change how it responds.