Final answer:
During recessions, the construction sector is usually hit the hardest, followed by the manufacturing sector and the finance sector. Other sectors of the economy may also be impacted, but to a lesser extent.
Step-by-step explanation:
During recessions, different business sectors are impacted in varying degrees.
The impact of recessions on business sectors can be ordered from greatest to least as follows:
- Construction Sector: The construction sector is usually hit the hardest during recessions. As housing prices decline, construction projects are halted, leading to job losses and a slowdown in the sector's growth.
- Manufacturing Sector: The manufacturing sector also experiences significant impact during recessions. Factors such as technological change and foreign competition contribute to job losses in this sector.
- Finance Sector: The finance sector is affected by recessions, but to a lesser extent than the construction and manufacturing sectors. The financial crunch resulting from falling housing prices and the recession leads to some contraction in the finance sector.
- Other Sectors: Other sectors of the economy may also be impacted by recessions, but their effects are usually less severe compared to the construction, manufacturing, and finance sectors.