A period of recession consists of four phases:

• Expansion: Following an economic downturn, financial markets, consumer spending, and job growth start to pick up again.
• Maturity: As economic expansion begins to mature, wages, the job market, and consumer and business spending are strengthened. Additionally, business profit margins and financial markets see significant gains while inflation maintains a comfortable rate.

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• Aging: At this point, job growth, industrial production, and spending start to slow, resulting in declining profits, volatile financial markets, and accelerating inflation.
• Recession: During this period, unemployment grows and consumer spending falls, resulting in declining profits for businesses and shrinking economic growth.

In most cases, an economy is considered to be in recession where it has experienced two consecutive quarters of negative growth. An economy's growth is usually measured by its Gross Domestic Product (GDP).

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History of recessions in the US

In its history, the US has experienced dozens of recessions which lasted from anywhere between 65 to just two months. The average length of recessions in the US is 17 months, according to data available with the National Bureau of Economic Research.

The longest-ever recession in US history took place between October 1873 and March 1879 and lasted a staggering 65 months. In recent history, the longest and most severe recession was seen during the Great Depression of 1929, when a period of recession lasted for 43 months.

After The Great Depression, the average length of a recession in the US fell to 10.35 months. This average number was at 20.52 months between June 1857 and August 1929, when the Great Depression had begun. The most recent recession in the US, which was also the shortest period of recession, was seen during the COVID-19 pandemic in February 2020 and lasted for just two months.

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Recession fears resurface

The fears of an impending recession have been in the news for years. However, the tariff policy undertaken by US President Donald Trump has reignited them.

The reciprocal tariffs that Trump has been announcing on a range of countries have triggered a spate of retaliatory tariffs on the US as well. This has triggered fears among market investors, which has caused large-scale selloffs globally. The trade war has also led to recession fears.