US in recession since December 2007: official panel
December 01, 2008
The US economy has been in recession since December 2007, a panel of economists charged with the official designation of business cycles said Monday.
The Business Cycle Dating Committee of the National Bureau of Economic Research said it made the determination during a conference call on Friday.
Although a recession is generally defined as two consecutive quarters of declining activity, the panel has its own criteria for determining a downturn.
"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," the panel said.
"A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion."
The committee said it "identified December 2007 as the peak month, after determining that the subsequent decline in economic activity was large enough to qualify as a recession."