A recession is when there is a significant downturn across many different industries that results in negative economic activity. Usually this will look like declines in the economy, the amount industries are producing, the amount consumers are purchasing, as well as a decrease in employment.
A popular train of thought is that a decline in the gross domestic product (GDP) for two or more consecutive quarters indicates a recession. Recessions are measured from the highest economic peak to the bottom of the downturn’s trough. A recession may last as little as a couple of months but recovering from the economic damage can take years.