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The traditional definition of "recession" is two consecutive quarters of negative economic growth, which hasn't happened yet. But, it's probably time for a change in how recessions are categorized, since it sure seems like we've been in one for a while now. Of course, the news wasn't unexpected, although the Dow took a tumble afterward.
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. 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.
There's no question we're in the midst of something. Whether you think it deserves the "R" word or not is a matter of personal preference. The real important question is how long will it last?
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