See Data Sources The financial press often states the definition of a recession as two consecutive quarters of decline in real GDP.
How does that relate to your recession dating procedure?
As another example, the Committee did not declare a recession for 2001 or 2003, even though the data at the time appeared to show a decline in economic activity (though not for two quarters).
Subsequent data revisions have erased these declines.
In reality, however, most business start ups move through all six stages and cease business within a few years.
Note especially that the term appears in context with related terms and concepts from the fields of economics, investment analysis, and business analysis.These are the well known phases of the business cycle such as recession, depression, recovery, and expansion. This business cycle often parallels changes in stock market prices, which are part of the stock market cycle.For more on these cycles and their phases, see the sections below.First, we do not identify economic activity solely with real GDP, but use a range of indicators, notably employment.Second, we consider the depth of the decline in economic activity.Recall that our definition includes the phrase, “a significant decline in activity.” Isn’t a recession a period of diminished economic activity?