Wednesday, April 30, 2014

Warmer temperatures boost US economy


Spring’s thaw is reviving the economy, too.

A recent batch of government and business reports show a U.S. economy emerging from winter’s deep freeze.

 Economists had expected growth to accelerate in 2014 after two years of slow and steady improvement. But an unusually bitter winter sent factories, hiring and consumer spending into hibernation.

 Now, as temperatures rise, the economy is regaining momentum. Factories are busier. Consumers are spending more. Banks are making more loans to businesses. Companies have bigger plans to invest in plants and equipment. And the improvement appears to be widespread across the country.

 
“The weather really played havoc. There were ice storms in Georgia. That is not something you see every day,” said Michael Dolega, senior economist at TD Economics. “Now, as Americans have dug themselves out and everything has melted, you’re going to get a bounce back.”

 

 

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