What marks the peak of the business cycle?

The peak of the business cycle is characterized by the last month of economic growth before a contraction begins. This moment represents the transition point where economic activity reaches its highest level before declining. At the peak, indicators such as GDP, employment, and income reach their maximum, signifying robust economic performance. Once the peak is reached, the economy typically begins to slow down, leading into a contraction or recession phase. Understanding the peak is critical for recognizing the cyclical nature of economies, where periods of expansion are followed by periods of contraction.