Industry managers anticipate the performance of their businesses in a recession. The research shows us that during the 1990–91 and 2001–02 downturns the U.S. consumer prioritized spending instead of actually cutting it in all sectors. Consumer spending did drop in discretionary areas, i.e., dining out, personal care products, and charitable donations, but spending on groceries, reading materials, and other options that substitute for more expensive ones rose, as did spending on insurance, health care, and education. Most analysts do not believe that this world recession will last long time because the financial system is much stronger, and globally linked. The majority view is that the recovery will begin in Q-2/Q-3 2009 and will be well underway by Year End 2009. Note: the classic definition of recession as identified by the National Bureau of Economic Research is two consecutive periods of negative economic growth.
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