Cooling off of a market or economy refers to a situation in which demand slumps, price levels fall, the number of transactions declines, and investment declines, leading to a slowdown in growth. This phenomenon can occur in various sectors of the economy and is often seen as a warning of a possible recession or period of economic weakness.

Case in point: "U.S. economic growth cooled in the last quarter of 2015, dropping to 0.7 percent year-on-year."