Slump: Slump is a very flexible term in that it is used to describe both a short, sharp decline as well as a more gradual, prolonged period of low activity or value. There are market slumps, economic slumps, industry slumps, earnings slumps and so on. In economic terms, slump usually refers to the beginning of a recession
During a slump unemployment is relatively high and inflation is low. Falls in demand will often lead to workers being laid off. It will become difficult for businesses to increase their prices without sacrificing sales. Investment by business will be low, and there will be spare capacity in the economy.
