pent-up-demand

A term used to describe one aspect of lagging consumer behavior in any given market. Economists use this term to explain the cyclical nature of the economy and a factor that drives a fast moving recovery from a recession. The theory holds that consumer demand never really disappears on an aggregate level. Buyers simply delay making purchases until they have the financial means to meet the price demanded by the seller. This creates a backlog of buyers on the market that is suddenly unleashed as recovery occurs.