http://www.bloomberg.com/news/2014-03-27/economy-in-u-s-expands-at-faster-pace-than-previously-estimated.html
The U.S. economy grew rapidly in the fourth quarter, more than was expected. GDP grew at about 2.6%. While retail stores have not been having a great year, the health care sector grew contributing to the rise in GDP. The number of unemployment claims have also dropped to 311,000 from 321,000. Consumer purchases grew by 3.3%.
Many economists claim the slowing in the economy can be blamed on the extremely harsh winter the U.S. has faced, one of the worst since 1966. The warm weather will hopefully continue to boost the economy.
I also hope the (hopefully soon) upcoming weather will continue to boost the economy. Macy's CEO Karen Hoguet's statement that business is doing "extremely well" in warmer-weather markets gives me hope for consumer spending for the spring/summer season.
ReplyDeleteI agree that warm weather could contribute to boosting the economy. With the cold weather finally leaving this will motivate consumers to spend more money on goods and services. The article mentions how Macy's Department Store has stated that as the weather improves, so have their sales. This is a clear example of how the change in weather can lead to an increase in consumer spending and confidence.
ReplyDeleteI definitely agree that the warm weather will boost the economy because it will encourage more people to go out of their houses and shop more. I think it is interesting how the economy has expanded even though retail sales have not been doing so well.
ReplyDeleteWarm weather doesn't necessarily boost the economy more than cold weather. GDP might not see too much of a significant difference simply because people will consume good and services based on the attributions of the weather no matter what. Sure, you can do more outdoor activities when it is warmer, and people tend to be happier when weather is warmer, thus their willingness to pay increases. But when it's cold, people don't necessarily consume less, they just consume things that pertain to the weather
ReplyDeleteI think that Obama Care was a large contributor to the increase in the health care sector. More people have been paying into this system creating significant growth. Also with more people having the ability to obtain coverage there will be a greater need for workers in these fields. This will then effect the unemployment rate. Both of these are positives.
ReplyDeleteI like to agree that the terribly cold winter is to blame for the slowing economy and that the warm weather will bring a much needed rise. The terrible winter also affected home prices especially in January which hit an all time low this year.
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