Recession
The most common definition of a recession is a fall in real (inflation-adjusted) gross domestic product for two or more quarters in a row.
Economists disagree on what constitutes a recession. The most common definition is a fall in real (inflation-adjusted) gross domestic product the standard wealth measure for an economy for two or more quarters in a row. Others argue that depth, rather than duration, is the key, and look for a "significant decline in economic activity", using indicators such as jobless data.
Quarterly GDP data can also be subject to substantial revisions, so using monthly data from a range of sources gives a more timely view.The National Bureau of Economic Research uses business activity. Its research suggests recessions last about a year and occur after business activity peaks and starts to fall, but before it bottoms out.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Council tax bills in worst hit areas set to rise by £500 in the next four years
Branded the ‘ultimate stealth tax’, the council tax burden is increasing across the country, with some areas potentially having to find hundreds of pounds more a year to pay the bill
-
Crypto ETNs are approved for UK retail investors
The FCA has approved the sale of crypto ETNs to retail investors from October. What is a crypto ETN, and what does this mean for investors?