It’s official: We’re in a recession

The National Bureau of Economic Research, the agency charged with identifying the start of recessions, declared that the U.S. economy had slipped into recession one year ago.

The agency charged with identifying the start of recessions made it official this week, declaring that the U.S. economy had slipped into recession one year ago. The government also reported that U.S. factory production fell to its lowest level in 26 years, and more than 181,000 people lost their jobs in November. The bad news sent the stock market into another nose dive, plummeting 680 points, or 7.7 percent, in a single day. The Dow gained back some ground during the week, but the dark pessimism remained.

The National Bureau of Economic Research’s designation of a recession carries weight because it is based on a broad assessment of the economy. While some experts define a recession as two consecutive quarterly declines in output, the bureau also tracks employment, incomes, and manufacturing. Most economists now believe this recession will last much longer than the postwar average of 11 months. “This downturn promises to be the worst since the Great Depression in the 1930s,” said Joseph Shapiro of investment firm MFR Inc.

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