The U.S. Economy Is Officially In Recession
The National Bureau of Economic Research said that the U.S. economy is officially in recession due to the COVID-19 crisis, reported Yahoo Finance.
- The NBER’s business cycle dating committee calls recessions based on various factors such as employment and production activity.
- They determined that after economic activity peaked in February, there were “sharp drops in employment and personal consumption” that followed.
- More specifically, “over 42 million Americans have lost their jobs” and “stay-at-home measures and businesses closures” have further halted economic activity.
- In terms of production, “GDP figures have yet to be published for the quarter covering the brunt of the pandemic,” but “readings on real personal consumption measures appeared to confirm that the U.S. consumer - a key driver of the economy - also peaked in February.”
Unfortunately, “the recession declaration ended the 128-month economic expansion that began in June 2009 and eclipsed the 1990s recovery as the longest on record.”