While gross domestic product (GDP) is the broadest measure of economic activity, the often-cited identification of a recession with two consecutive quarters of negative GDP growth is not an official designation. The NBER recession is a monthly concept that takes account of a number of monthly indicators—such as employment, personal income, and industrial production—as well as quarterly GDP growth.
The designation of a recession is the province of a committee of experts at the National Bureau of Economic Research (NBER), a private non-profit research organization that focuses on understanding the U. Therefore, while negative GDP growth and recessions closely track each other, the consideration by the NBER of the monthly indicators, especially employment, means that the identification of a recession with two consecutive quarters of negative GDP growth does not always hold.
Attempts have been made to date recessions in America beginning in 1790.
The program was organized by Zvi Eckstein and Ken West.
To construct the dates, researchers studied business annals during the period and constructed time series of the data.
The earliest recessions for which there is the most certainty are those that coincide with major financial crises.
Cycles in the country's agricultural production, industrial production, consumption, business investment, and the health of the banking industry contribute to these declines. The unofficial beginning and ending dates of recessions in the United States have been defined by the National Bureau of Economic Research (NBER), an American private nonprofit research organization.
recessions have increasingly affected economies on a worldwide scale, especially as countries' economies become more intertwined.