Skip to main content

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 2020-08-14 at 6.45.53 PM

Teen arrested over fatal shooting of 5-year-old boy in Brooklyn Park

Police say the teen was filming a social media video while handling a gun.

Joe Biden

President Biden coming to Minnesota to promote Bipartisan Infrastructure Law

Tuesday's trip follows passage of the $1.2 trillion Bipartisan Infrastructure Deal.

Kirill Kaprizov

Kaprizov gets into the holiday spirit to rout Jets

Kirill Kaprizov's four points led the Wild to a 7-1 victory.

Kirk Cousins

Coller: Cure to Vikings' disrupted season lies in an explosive passing game

The Vikings go to San Francisco knowing that a win would be a huge boost to their playoff hopes.

unsplash football helmet ground

Judge upholds star QBs suspension for state championship game

Sam Backer, of Chatfield Senior High, won't be allowed to play in Friday's title game.

Screen Shot 2021-11-25 at 7.53.37 AM

Another 5,000 lbs. of goldfish removed from Carver County lakes

It all likely stemmed from people dumping their pets into local waters a few years ago.

Rosaleia Shelton

Appeal to find 19-year-old missing from Bloomington

The teen left her home on Monday afternoon.

hospital, emergency room

Deaths of twin fetuses after woman was shot ruled a double homicide

The woman was shot in the abdomen in mid-September.

Payton Willis / Gopher Basketball

Gophers improve to 5-0 with win over Jacksonville

The Gophers are establishing momentum early in the season.