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soft patch

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Financial Dictionary

Soft Patch

A period of economic slowdown amid a larger trend of economic growth. The term is most often used in the financial media and by the U.S. Federal Reserve to describe a period of economic weakness.

Investopedia Commentary

This term has started to come into greater use since Fed Chairman Alan Greenspan used it in his review of the overall U.S. economy. An example of a soft patch would be an economic slowdown due to rising oil prices, believed to be short term, with the economy growing at a faster rate after the slow patch.

Related Links

The Federal Reserve (the Fed) Tutorial

See also: Alan Greenspan, Economic Growth, Expansion, Federal Reserve Board - FRB, Federal Reserve System, Financial Porn, Recession

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