What does the cyclical component measure?

The cyclical component measures irregular large-scale shifts over time that are related to the economy's business cycle. These fluctuations typically occur over a longer duration, often influenced by macroeconomic factors such as changes in consumer demand, investment levels, and overall economic activity. Unlike seasonal patterns, which occur at predictable times each year, or daily sales patterns that are short-term, cyclical changes are not regular or predictable and can impact businesses and industries significantly over years. This aspect of analysis is crucial for understanding long-term planning and strategic decision-making in agribusiness and other sectors.