In the realm of economics, a recession refers to a significant decline in economic activity that lasts for a sustained period. However, market pundits and financial practitioners quote a wide range of definitions from general to specific. In the following, we provide a framework to help better define and follow the path up to and through a recession. This framework includes year-over-year changes in:

- employment trends
- real income less transfers
- industrial production
- real retail sales

By understanding the indicators, the causes, and the impacts of recessions, we can better educate investors, potentially avoid many behavioral errors, and have a greater chance of effectively navigating the economic turmoil.