(By The Business Cycle Dating Committee of the National Bureau of Economic Research
Version of December 11, 2008 )
The committee determined that a peak in economic activity occurred in the U.S. economy in December 2007.
The peakmarks the end of the expansion that began in November 2001 and the beginning of a recession.The expansion lasted 73 months; the previous expansion of the 1990s lasted 120 months.
Definition of Business Cycle
A recession is a significant decline in economic activity spread across the economy, lasting morethan a few months, normally visible in production, employment, real income, and otherindicators. A recession begins when the economy reaches a peak of activity and ends when theeconomy reaches its trough. Between trough and peak, the economy is in an expansion.
07 - the peak
Payroll employment, the number of filled jobs in the economy based on the Bureau of LaborStatistics’ large survey of employers, reached a peak in December 2007 and has declined inevery month since then. An alternative measure of employment, measured by the BLS’shousehold survey, reached a peak in November 2007, declined early in 2008, expandedtemporarily in April to a level below its November 2007 peak, and has declined in every monthsince April 2008.
08 - recession
Many of the indicators, including monthly data on the largest component of GDP, consumption, have declined sharply in 2008 which met the standard for arecession
Ref:http://www.nber.org/cycles/dec2008.pdf
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