The Recession is Here!

A large number of economists around the country are now proclaiming that the economy has fallen into a recession. Following a report on service businesses, which dominate the U.S. economy, economists were quick–and rightfully so–to start freely using the R word.

For the first time since 2003 service sector activity dropped, and if you’ve been paying attention to the jobs numbers, it’s not too hard to see why all the concern.

There’s plenty of proof and evidence that the recession is finally here, after much of the speculation had previously been downplayed.

A recent survey by the Institute of Supply Management, which covers the healthcare industry, finance, real estate, construction, transportation, and retail was good fodder for the economists.

According to the chief economist of First American Funds, the hard data was not previously available to substantiate any such claims, but that story is no longer the case.

While Housing had been a recent poster child for the problems currently here as well as those we knew we’d be facing in the months and likely year or two to come, a weakening economy, highlighted by the large drop in business activity, is spreading the recession reality around the country so much so that it’s no longer up for debate.

One of the good outcomes (or bad, depending on how you look at it), is the recent push of a stimulus package that would include $600 for most taxpayers, as well as some temporary tax cuts for businesses. A check in the mail is usually a good thing…but these days, with our economy the way it is, even that may be a wolf in sheep’s clothing.