Panel Says U.S. Recession Began in March

The Business Cycle Dating Committee of the National Bureau of Economic Research said Monday that the United States entered a recession in March.

Made up of academic economists from Harvard, Stanford and other prestigious universities, it said that the longest expansion in U.S. history -- exactly 10 years -- ended at the same time the nation's 10th recession since the end of World War II began.

The popular definition of a recession is two consecutive quarters of contraction in the gross domestic product. But the Business Cycle Dating Committee closely watches industrial production, employment, inflation-adjusted personal income and wholesale-retail trade to pinpoint exactly when a recession began.

Despite saying the recession began six month prior to the terrorist attacks, the committee did note that the United States may have escaped were it not for Sept. 11.



"The attacks clearly deepened the contraction and may have been an important factor in turning the episode into a recession," the panel said in a statement.

At the White House, the Bush administration said the latest news was further evidence of the need for Congress to pass an economic stimulus plan, the Associated Press said.

The NBER panel is composed of six economists including Martin Feldstein, who served as chairman of former President Reagan's Council of Economic Advisers.

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