Grand Rapids Business Daily

Recession?

Are we in a recession? If I remember correctly from my college economics class there is a precise definition to a recession. Something like multiple quarters without growth. It seems to me this should be a simple answer. There was either growth for the required time or there was not. Why are some people saying that we are in a recession and some are saying that we are not? Does anyone know what the definition of a recession is and have the numbers to back it either way?

Public Comments

1. The common answer is 2 quarters of negative growth. The offical group that declares if we are in a recession does not use that standard but their criteria is similar. This board usually declares a recession after it is over. Even if you do not know if you are in recession, it can feel like you are in recession.
2. I have economics class right now. Yes, the US is in a recession. It's when there have been two bad quarters in a row and we certainly have that. The media and people in politics say we aren't because they don't want to scare the public.
3. We are in a consumer led recession so the definition of a recession may not look real at this point.
4. allies needs to get a refund on his econ class. the feds have just come out with last quarters growth numbers. the first quarter of this year we had 0.6% growth, and that is NOT the revised number, which will come out next week ,and will be closer to 1% growth. therefore we are NOT in a recession. but keep hoping, allies, maybe it will start this quarter