Had been dating


03-Mar-2020 21:12

Previously the longest postwar recessions were those of 1973--82, both of which lasted 16 months.

In determining that a trough occurred in June 2009, the committee did not conclude that economic conditions since that month have been favorable or that the economy has returned to operating at normal capacity.

The second was that real GDI is a more comprehensive measure of income than real personal income less transfers, as it includes additional sources of income such as undistributed corporate profits.

The committee's use of income-side measures, notably real GDI, is based on the accounting principle that the value of output equals the sum of the incomes that arise from producing the output.

There were two reasons for selecting the earlier date.

The first was described above -- the fact that quarterly real GDP and GDI rose strongly in the fourth quarter.

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The committee also maintains a quarterly chronology of business cycle peak and trough dates.Further, macroeconomic indicators are subject to substantial revisions and measurement error.For these reasons, the committee refers to a variety of monthly indicators to choose the months of peaks and troughs.The committee concluded that strong growth in both real GDP and real GDI in the fourth quarter of 2009 ruled out the possibility that the trough occurred later than the third quarter.

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The committee designated June as the month of the trough based on several monthly indicators.

The committee decided that any future downturn of the economy would be a new recession and not a continuation of the recession that began in December 2007.