While the US economy is not technically in a recession, the majority of Americans believe it is, new research has found.
A recent survey conducted by Bankrate found 59 per cent of US adults feel as though the US economy is in a recession.
Almost the same proportion of those in the lowest-income households (60 percent of those earning under $50,000 annually) and the highest-income households (61 per cent for those earning $100,000 or more annually) said they thought they felt like the US economy is in a recession, according to the poll, which ran between October 26 and 30.
It seems the definition of recession being used is different to the one used by economists or business leaders.
The majority of Americans believe the US economy is in a recession, according to a new survey
Mark Hamrick, Bankrate senior economic analyst, said: “Most Americans aren’t looking at the economy in terms of the definition of recession that economists or business leaders would use.
“They look at the performance of the economy as they perceive it relative to their own personal situations.”
A recession is widely recognised as two consecutive quarters of negative GDP growth, although this isn’t the official definition.
The National Bureau of Economic Research (NBER) declares recessions in the US.
The NBER definition emphasises that a recession involves a significant decline in economic activity that is spread across the economy and lasts more than a few months.
As well as GDP, the NEBR considers other economic indicators, such as employment.
Federal Reserve officials will meet today to discuss whether to change interest rates.
The Fed is expected to hold interest rates, which are at a 22-year-high, and will likely project cuts next year.