Seasonal variations are those periodic movements in business activity which occur regularly every year and have their origin in the nature of year itself. The factors that cause seasonal variations are-
- Climate and weather conditions- The most important factor causing seasonal variations is the climate. Changes in the climate and weather and weather conditions such as rainfall, humidity, heat act on different products and industries differently.
- Customs and traditions and habits– Though nature is primarily responsible for seasonal variations in the times series, customs traditions and habits also have their impact. For example on certain occasions like deepawali, dusserha Christmas there is big demand for sweets and also there is large demand for cash before the festivals because they need money for shopping and gifts.