A recession is a significant decline in economic activity that lasts for an extended period, typically more than a few months. It affects multiple sectors of the economy, including manufacturing, retail, finance, and services. During a recession, industrial production slows down, consumer spending decreases, and business investment falls. As demand weakens, companies may cut costs by reducing their workforce, leading to higher unemployment rates. Financial markets often become unstable, and credit availability may tighten. Governments and central banks may respond with stimulus measures, such as lowering interest rates or increasing public spending, to support recovery. Recessions can have lasting impacts on economic stability and public confidence.