In business, seasonality is a variation in economic activity that recurs with regularity as the result of changes in climate, holidays and vacations.
Seasonality affects some industries more than others. For example, the Christmas season is the most important period for retailers. Up to half of some retailers' annual sales occurs during the fourth quarter of the year.
Almost all businesses have some degree of seasonal variation. It is often necessary to make allowances for seasonality when interpreting or projecting financial or economic data, a process economists call seasonal adjustment.
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