What cold weather does to economic growth

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“Business just stopped dead in its tracks.” – Slowdown “worse than expected.”

“The US economy slowed drastically in the first three months of the year as a harsh winter exacted a toll on business activity,” says this article by Martin Crutsinger.

The scant 0.1 percent growth rate in the gross domestic product, the country’s total output of goods and services, was well below the 1.1 percent rise economists had predicted.

Spending on goods barely rose, business investment fell, spending on equipment plunged, the trade deficit rose, and residential construction fell at a 5.7 percent rate.

Consumer spending mainly reflected higher utility bills

In its report Wednesday, the government said consumer spending grew, “but that gain was dominated by a 4.4 percent rise in spending on services, reflecting higher utility bills.”



Thanks to Bill Sellers for these links

14 thoughts on “What cold weather does to economic growth”

  1. We need to remember that 9 months ago they changed the way they compute GDP. They added several new categories that added about 3% to the GDP.
    So a growth of 0.1% means (by the old method) growth of -2.9%.
    Our economy is in contraction and nobody is paying attention. Very sad.

  2. Like Bob, who’s getting out of Seattle, people are going to have to summon up the strength of their own convictions and take action….don’t wait for the herd, it’ll be too late by then. Read Leibovich’s book, “THIS TOWN” to understand how clueless our national leadership is.

  3. No Surprises here. Not even surprised that they are trying to rationalize it with the foul weather. Truth be told, with a dearth of jobs that pay a real living wage. Part time employment [to avoid paying full time payroll taxes and benefits], the ridiculous cost of energy/utilities [petroleum, electricity, water, sewer, etc.], and utility usage fees. Having to pay a cable bill to watch commercials and product placements embedded within your TV viewing, road tolls, sales tax, fuel tax, groceries. I’m sorry there is no money to spend on discretionary items. If you watched the video above, even media sales were down. Which if the foul weather logic applied, you would think that people stayed home and bought more pay per view. And durables? Well I guess that there would have been a boon in snow blower sales this Winter, if there was enough discretionary income to buy one. The cognitive dissonance that minimalism is sheik is setting in. There is no incentive for the next generation to work hard, when all around them they see that the reward for their hard work is that someone will either sue you, fine you, or tax you into poverty. It’s time to learn how to build and live in an igloo. LOL.

    1. You forgot overcharge for a roof over your head and cause homelessness. This will be a big cause of white genocide in the northern hemisphere as the little ice age sets in.

    2. You forgot overcharge for a roof over your head and cause homelessness. This will be a big cause of white genocide in the northern hemisphere as the little ice age sets in.

    3. We might not have any discretionary income and no job but, hey, they say we will have a cleaner environment. Sarcasm.

  4. I would think cold weather would be a problem for more than just business. Think about food production and distribution. Famine and plague is the big hazard to watch for as the little ice age sets in just like in the early 14th century.

  5. Would not be surprised if revisions to Q1 show negative GDP growth for the quarter. Reliability of these numbers given the political climate and fact headline revisions never get media attention. Economic rebound in Q2 is being hyped despite cold Spring.

  6. My house has a 5deg difference from upstairs to downstairs right now, not over a century. Last week in 1 day we had a 28deg C swing (+22, -6) and I am happy to report no fatalities or climate refugees. Back to you, Rob.

  7. Utility bills have been an issue most definitely this past winter.

    Speaking of winter, Duluth at #3 snowiest season.

    Forecast still providing a chance of overnight snows this week.

    Here is an older update showing snow season totals.
    Need to beat 135.4″ set in 1995/96 season.
    Only 4.7″ more to beat the record. 1.1″ to make second place.

  8. I wonder… will they continue to destroy the economy and lifestyle of our nation over fears of .6 degree increase in temperature over 100 years?

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