The National Bureau of Economic Research (NBER), the prestigious private research institute that is regarded as the arbiter of US recessions, declared on Monday, that the U.S.economy has slipped into recession.
The current recession , which many economists expect to persist through the middle of next year, is already the third-longest since the Great Depression, behind only the 16-month slumps of the mid-1970s and early 1980s.
The NBER does not define a recession as two consecutive quarters of decline in real gross domestic product, as is the rule of thumb in many countries. Instead, it looks for a decline in economic activity, spread across the economy and lasting more than a few months.
NBER said in a statement. “All evidence other than the ambiguous movements of the quarterly product-side measure of domestic production confirmed that conclusion.”
The White House acknowledged the NBER’s declaration, but said that did not change its course on coping with the financial crisis that has raged since August 2007.