Tuesday's report that business activity in the service sector declined for the first time in five years and that employers are poised to make substantial payroll cuts has led a majority of economists to claim that the U.S. economy has officially entered into recession.

A survey by the Institute for Supply Management drew figures from several key industries, including retail, transportation, healthcare, finance, real estate, and construction. Previous figures detailing a decline in manufacturing were highlighted as key indicators of a looming recession.

Chief Economist of First American Funds Keith Hembre observed, "My forecast had been that the recession would begin this quarter, but the hard data wasn't there yet. But now we're seeing that. The service sector is a much larger component of the economy [than manufacturing], and this is very much a recession reading."

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