U.S. Economy Has Been in Recession a Year, Business Group Says

The U.S. economy has been in a recession for the past year, the Associated Press reported Monday, citing a report by the National Bureau of Economic Research.

NBER, which is a private, nonprofit research organization, said its panel of economists determined that the U.S. recession began last December, AP reported.

A standard definition of a recession is when gross domestic product declines for two consecutive quarters. The GDP turned negative in the third quarter, and many economists believe it is falling in the current quarter at an even sharper rate, AP said.

But NBER uses broader and more precise measures, including employment data, and in a news release, the group said its committee studying the issue made the determination that the recession began a year ago, AP reported.

Many economists believe the current downturn will be the most severe since the 1981-82 recession, AP said, as the U.S. economy is being hit by the most severe financial crisis since the 1930s as banks struggle to deal with billions in loan losses.