The bite from the Federal Reserve's attempts to chill demand has rolled through various sectors, including housing, manufacturing and technology. Even so, the overall economy has continued to chug along.

• Economists say these types of "rolling recessions" might be what help define this cycle.

Why it matters: If that story continues, it could achieve a "soft landing" scenario that involves pockets of slowing activity rolling through the economy — rather than a sharp drop-off in overall activity all at once.

Between the lines: The generally accepted definition of a recession, from a National Bureau of Economic Research committee, is "a significant decline in economic activity that is spread across the economy and lasts more than a few months."

• That isn't what we've seen in the U.S. in the last 18 months.

What they're saying: "The macro economy didn't fall into a recession. But that doesn't mean that if you were working in tech, housing or now manufacturing, your ecosystems weren't contracting," says RSM chief economist Joe Brusuelas.

• "When you have a rolling recession, these industries slow, and then they begin to move on."

Flashback: Economists used "rolling recessions" to describe periods during the 1980s and 1990s, according to a retelling by the San Francisco Fed. A number of sectors — including manufacturing, oil and natural gas, and the defense industry — experienced individual downturns, but those sequential soft patches were not enough on their own to tank the national economy.

Where it stands: In the past year, softer activity has rolled through some sectors, with the low points seen at different periods.

By the numbers: The housing industry experienced a steep contraction for most of 2022, the first to feel the impact of the Fed's rate-hiking campaign.

• The sharpest decline in activity was seen in the final six months of the year, when residential investment fell at a 27% annual rate in Q3 and a 25% annual rate in Q4. That low point coincided with a rebound in the broader economy that returned to growth.
• That housing recession is in the past: Residential investment activity declined just 4% in the first three months of 2023, with various indicators of building activity pointing to further healing in the sector. (GDP figures for the most recent quarter are due next week.)

Then, there was tech: In that sector, household-name companies announced thousands of job cuts as stock prices dropped — a sign that the pandemic reopening boom times were coming to an end.

• Manufacturing also remains in a soft patch, with the latest data from a closely watched survey showing activity contracting for the eighth consecutive month in June. Still, there is a tailwind from Biden-era legislation that's pouring billions into projects that will manufacture goods stateside.

What to watch: There are warning signs the battered commercial real estate sector could be next and a possibility that regional banks constricting their lending will slow credit to smaller businesses of all types.

Worth noting: "The term 'recession' is supposed to be an aggregate concept applied to the overall economy, not specific sectors," says Scott Sumner, an economist at the Mercatus Center.

• "If it's a true recession, you'd see a big drop in employment in manufacturing and housing," Sumner adds.

In a dream scenario, consumer demand would ease gradually — not fall off a cliff — to put downward pressure on inflation.

• The latest retail sales figures show that could be playing out.

Driving the news: Retail sales rose 0.2% last month — a sign that shoppers continue opening their wallets, but at a more moderate pace.

• That compares to May, when retail sales rose an upwardly revised 0.5%.

By the numbers: Online retailers (+2%), furniture stores (+1%) and electronics stores (+1%) were among the categories that saw the largest monthly increase in spending.

• Spending rose 2% in another catch-all category for various other retail shops.
• But spending fell at department stores (-2%), building material supply stores (-1%), gas stations (-1%), sporting goods shops (-1%) and food and beverage stores (-1%).

Of note: Retail sales excluding gas, autos and building materials — the "control group" that calculates part of the consumer spending component of GDP — rose 0.6% in June (compared to 0.3% in May).

• "Consumer spending was likely a net tailwind to the economy in the second quarter, mostly offsetting headwinds from inventory destocking and an increased trade deficit," Bill Adams, chief economist at Comerica, wrote in a note.