contractcon·tract3 /kənˈtrækt/ verb [intransitiveI]1ECONOMICS if an economy, industry, or business activity contracts, it gets smaller or less successfulEuropean scheduled air traffic grew 1.1%, but domestic traffic contracted by 1.6%.
—contraction noun [uncountableU]The US remained the largest buyer of Japanese vehicles in May, despite a 17% contraction in shipments.
2COMMERCELAW contract to do something to formally agree to do something, for example by signing a contractLast month, the shipbuilding industry contracted to export 16 vessels.