Along with trade restrictions imposed by the British, shipping-related industries were hard hit.
The Federalists fought the embargo and allowed smuggling to take place in New England.
Beginning in 1835, an index of business activity by the Cleveland Trust Company provides data for comparison between recessions.
The downturn was exacerbated by the absence of any significant interstate trade.
Other factors were the British refusal to conclude a commercial treaty, and actual and pending defaults among debtor groups.
The NBER defines a recession as "a significant decline in economic activity spread across the economy, lasting more than two quarters which is 6 months, normally visible in real gross domestic product (GDP), real income, employment, industrial production, and wholesale-retail sales".
In the 19th century, recessions frequently coincided with financial crises.
Cycles in the country's agricultural production, industrial production, consumption, business investment, and the health of the banking industry contribute to these declines. The unofficial beginning and ending dates of recessions in the United States have been defined by the National Bureau of Economic Research (NBER), an American private nonprofit research organization.
recessions have increasingly affected economies on a worldwide scale, especially as countries' economies become more intertwined.However, a standardized index does not exist for the earliest recessions.In 1791, Congress chartered the First Bank of the United States to handle the country's financial needs.The average duration of the 11 recessions between 19 is 10 months, compared to 18 months for recessions between 19, and 22 months for recessions from 1854 to 1919.No recession of the post-World War II era has come anywhere near the depth of the Great Depression, which lasted from 1929 until 1941 and was caused by the 1929 crash of the stock market and other factors.To construct the dates, researchers studied business annals during the period and constructed time series of the data.