This is the stagnation phase . The stagnation phase also may appear to be a stability phase. Stability is a temporary state in the community's life cycle. Something usually comes along to upset the status quo. It could be a natural disaster like a tornado, an economic disaster like a factory closing, declining wheat and oil prices, or a change in modes of transportation.
Positive forces can, however, come along to reenergize expansion.
If the change that upsets the stability is negative, then next comes the retrenchment phase . In this period the actual economic vitality declines as the value of locally produced goods and services diminishes. People stop reinvesting in their businesses and their homes. Young people leave to find work elsewhere. And households increasingly shop for goods in nearby trade centers and central cities instead of their local retail businesses for a variety of reasons.