What is cooling down (of a market or economy)?

Cooling down of a market or economy refers to a situation where demand collapses, price levels drop, the number of transactions decreases, and investments diminish, 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 a period of economic weakness.

Example: "The economic growth of the United States cooled down in the last quarter of 2015, with a decline in growth to 0.7 per cent on an annual basis."