Seasonality definition
/What is Seasonality?
Seasonality is a recurring and predictable pattern in the level of business activity over the course of a year. This pattern can be used to predict sales levels throughout the year, and so is incorporated into the annual budgeting process. When reviewing the results of a business, the analyst must take into account the impact of seasonality on reported results.
Examples of Seasonality
As an example of seasonality, the retail trade experiences a major increase in sales prior to and during the winter holidays, followed by a slump earlier in the next calendar year. Similarly, the market for golf carts in winter climates increases during the shoulder seasons and summer months, after which it declines. Another example is the sale of seeds for vegetable gardens, which spike in the spring months and then decline.