The National Bureau of Economic Research Monday said that the COVID-19 crisis launched the US economy into a recession, thus ending the longest economic expansion on record.
According to the committee, economic activity peaked in February, as drops in employment and personal consumption gripped the economy in March. When NBER declared a “peak” in February, and peaks are followed by a period of “significant decline.”
Since the first cases of Coronavirus took form in the United States, 42 million Americans have lost their jobs and gone onto the government dole. Stay-at-home measures brought the economy to a grinding halt.
NBER said Bureau of Labor Statistics confirmed that the labor market peaked in February. GDP figures have yet to be published for the quarter during which everyone was forced by decree to stay-at-home. But the NBER said monthly recordings on real personal consumption measures appeared to confirm that the U.S. consumer – a key driver of the economy – also peaked in February.
The committee looks for a “significant decline in economic activity” across several economic indicators, such as GDP, real income, and employment, as well as retail and manufacturing sales.