Define a Recession

Period of decline in economic activity

NBER Recession Indicator for the US

The National Bureau of Economic Research (NBER) defines a recession as a "significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators."

The NBER Business Cycle Dating Committee uses a variety of economic indicators to determine the beginning and end of recessions. These indicators include:

• Gross domestic product (GDP)
• Employment
• Real income
• Manufacturing production
• Wholesale-retail sales

The NBER does not have a fixed definition of a recession, and the length and severity of recessions can vary. However, the NBER typically defines a recession as a period of at least two consecutive quarters of decline in GDP.