U.S. Economy In Recession

December 1 - The National Bureau of Economic Research's (NBER) Business Cycle Dating Committee determined formally on November 28th that the U.S. economy is in a recession. The Committee found that the economy peaked in December of 2007, ending a 73 month period of economic expansion. Although two months of negative economic growth is a common rule of thumb for determining whether or not the economy is in recession, the Business Cycle Dating Committee uses a more complex set of measures to make the formal declaration. The Committee defines a recession as "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 current recession is already longer than 8 of the last 10 postwar recessions, with the average being 10 months. Although the Dating Committee does not make any projections, many experts believe the economy will not bottom out until the middle of 2009, at the earliest -- which would make it the longest recession since the Great Depression.