Experts have been talking about a U.S. recession for close to a year now, but with no official announcement, the debate continues. Here is an update based on the most recent economic reports to help better understand where the economy currently sits and if a recession is still on the horizon.
Definition of a recession
A drop in output across all leading economic indicators defines a recession. More specifically, if employment levels drop, consumer spending decreases and industries don't produce as much as they did previously. These areas of economic activity have to be in a long-term decline for there to be an official call, a definitive recession.
Even though the final monthly and quarterly numbers of these activities are used to determine a recession, they're not always representative of the state of the economy. The National Bureau of Economic Research (NBER) is the agency that calls a recession whenever it notes that economic indicators are showing continued signs of a slowdown.
In the past, the NBER would call a recession after two consecutive quarters of negative gross domestic product (GDP). What makes things different this time is that other economic indicators still showed strength during the same contraction period. This forced the NBER to reassess.
https://www.forbes.com/sites/qai/2022/12/13/recession-fears-are-we-unofficially-in-a-recession-now/?sh=756e13f832ef
Edit: The response has been crazy…I thought that we are NOT in a recession according to everyone on Reddit?
submitted by /u/DrixlRey
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