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.
-
Review: Eden Roc Cap Cana – fun, sun and golf in the Caribbean
Travel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yet
The chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry