Cold weather chilled economy more than expected


Traffic stalled, schools closed, travel discouraged. With bitter temperatures and repeated snowfall dumps (remember?), the harshest winter in decades kept millions of people home, and the economy stagnated as a result.

The Los Angeles Times reports that the winter economic slowdown was much worse than had originally been estimated. The story, citing a report from the Commerce Department that was released Thursday, said that Old Man Winter also chilled the recovery that had appeared poised to take off this year.

BBC News added the US economy "shifted into reverse" in the first three months of 2014, shrinking by an annual rate of 1 percent. Most Wall Street analysts had forecast the economy to contract by around 0.5 percent. The slide represents the worst economic performance since the first quarter of 2011.

A big factor in the contraction was a larger decline than originally estimated in how much businesses spent to restock their shelves.

“Companies were not able to generate more inventory to offset that consumption because trucks were stuck on the road and employees couldn’t get back to the factories,” said Bernard Baumohl, chief global economist at the Economic Outlook Group.

But other recent data indicate that economic growth has picked up significantly as the snow has melted and as spring has arrived, putting the recovery back on a slowly improving track.

Next Up

Screen Shot 2020-11-23 at 8.35.40 AM

More than 230,000 people have downloaded Minnesota's COVID exposure app

The more people who use the app, the more effective it is.


Despite pandemic, Life Time pushes ahead to open downtown co-working space

It was originally planned to open in the fall, but it has been pushed back to April.

shamrocks irish nook

The Nook issues plea, asks people to order from its other restaurant

Shamrocks Irish Nook has the same food as The Nook, the restaurant owners say.

Screen Shot 2020-12-02 at 9.55.05 PM

Small plane lands on northbound I-35W in Twin Cities

A large police presence is at the scene.


Judge orders Minnesota gym that defied shutdown to close

Attorney General Keith Ellison sued the gym after it remained open.

montana cutbank

Charges: Man shot victim 'without provocation' using sawed-off shotgun

The incident happened on Nov. 24 in Ten Lake Township, located in Beltrami County.

Governor Tim Walz

Watch live: Walz, first responders address Minnesotans

Some departments have been forced to shift staffing or suspend service due to COVID-19.

covid-19, coronavirus

CDC says COVID-19 quarantine period can be cut to 10 or 7 days

You can come out of a 7-day quarantine following exposure provided you've had a negative test.

maple grove fire

1 person found dead inside Maple Grove business that burned down

A person had been unaccounted following the fire that destroyed Hanson Implement and Storage Tuesday night.

One-dollar bill, cash, money

Appeals court rules MN high school students can get unemployment benefits

They've been denied the benefits, and some were even asked to pay them back.

covid-19, coronavirus

Dec. 2 COVID-19 update: 77 more deaths in Minnesota

The death toll is closing in on 3,700 in Minnesota.