The National Bureau of Economic Research (NBER) announced today that the U.S. economy has been in recession since December 2007. NBER’s Business Cycle Dating Committee — “which maintains a chronology of the beginning and ending dates of U.S. recessions” — explained:
The committee determined that a peak in economic activity occurred in the U.S. economy in December 2007. The peak marks the end of the expansion that began in November 2001 and the beginning of a recession.
A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators.
In their release, NBER dispelled a persistent myth that was often repeated by the White House regarding the definition a recession saying that “two of more quarters of declining real GDP” are not necessarily needed for an economy to be in a recession.