Economists Predict Recession to Last 14 Months

According to a survey conducted by the Federal Reserve Bank of Philadelphia, private-sector economists indicated that they believe the United States economy fell into recession last spring.  The economists also  expect a sharp contraction during the fourth quarter 2008. 

The Federal Reserve Bank of Philadelphia's quarterly Survey of Professional Forecasters also predicted that non-farm payrolls would shrink by an average 222,400 jobs per calendar month during the fourth quarter 2008.  This is nearly five times the pace of monthly job losses they originally forecast when the survey was taken back in August 2008.  The previous estimate was for 45,400 jobs lost per month during the fourth quarter 2008.

The economists surveyed also said the United States economy had in fact entered a recession back in April 2008 and that the economic downturn would last for 14 months.