FE reported that the world's largest economy US is now in recession for 18 straight months, one of the longest since the 1930s Great Depression, amid rising hopes of an early economic revival. As per report, the American economy has been in recession for one and a half years, even as the battle for economic revival centered on bailout programs continues to progress.

According to non profit research organization National Bureau of Economic Research, the US officially slipped into recession in December 2007. The hopes of green shoots of recovery for the economy have been sparked by the US Federal Reserve's observation that the pace of economic contraction has slowed in recent times.

Moreover, the number of initial claims for unemployment benefits has fallen by 14,000 to 631,000 last week, signaling a possible thaw in the country's strained labor market.

Still, the latest official data showed that US GDP shrank at a staggering pace of 6.1% in the first quarter of 2009. Nonetheless, consumer spending climbed during the same period.

The US Federation, while keeping the key rates unchanged in the range of 0% to 0.25%, noted that the economy is shrinking at a slower pace.

(Sourced from www.financialexpress.com)