The Duration of Post War Recessions

Chart of the Week for July 18-24, 2003

The National Bureau of Economic Research (NBER) publicly announced on Thursday, July 17, that the recession beginning in March 2001 (peak of economy) officially ended only eight months later in November 2001 (economic low point). This compares favorably to the length of the previous recession ended in March 1991, but is 3 months shorter than the average of previous postwar recessions. By definition a recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. A recession begins just after the economy reaches a peak of activity and ends as the economy reaches its trough. Based on the NBER announcement the economy has been in expansion since November 2001.

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