What Does the Phrase "macro Environment" Mean?


Quick Answer

A macro environment represents the economy as a whole, not a particular region or business sector. A macro environment includes inflation, employment, overall monetary and fiscal spending policy and gross national product.

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Full Answer

General business cycles, as opposed to the individual business sector, are part of a macro environment. Business cycles fluctuate in terms of expansion or recession. During expansion, increases in employment, production, sales and personal incomes measure the health of the economy. Decreases in these indicators occur during a recession. A company's business health is influenced by overall economy performance. The automobile industry is a cyclical industry that is heavily influenced by the macro environment.

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