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Sunderland city centre lost 2% of its private sector jobs, while Preston's city centre saw a contraction of 2.7%.
Democrats point to the legacy of the financial crisis under George W Bush – which saw a contraction of 7.6% in GDP as Obama took office.
But during this time both cities actually saw a contraction in the number of jobs in their traditional central business districts.
A second downturn lasted for three quarters from the end of 2011 to the middle of 2012, but until Friday the City was confident that a fresh fall in gross domestic product in the final three months of last year, which saw a contraction of 0.3%, would be followed by a recovery in the first quarter of 2013.
The latest survey suggested the manufacturing and broader services sector grew, while construction and retail saw a contraction.
Mr Cherry said: "For the first time since 2010, we saw a contraction in the size of the UK business community last year.
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"The infrastructure is so old and unreliable that we are going to see a contraction in capacity," he said.
The fourth quarter might also see a contraction, said Nomura, an investment bank, which would put Brazil in technical recession.
THE Taiwanese have not seen a contraction of their economy since they began compiling records in 1952.
"We might see a contraction in the economy, we might see a whole new political environment that wipes this out," Levinson said.
"Now we see a contraction of the ability of good companies to get money, because of all the money the bad companies sucked in," Mr. Jensen said.
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CEO of Professional Science Editing for Scientists @ prosciediting.com