An report was released last month weighing in on the economic performance of the first quarter of 2014. The results were less than impressive, downright depressing to most. However, economists aren’t losing hope just yet.
Ups and Downs
The reported 2 percent shrink in economic growth in the first quarter is the highest dip we have seen since the height of the recession in 2009. So why aren’t experts worried? The weather. Yes, remember the long and frigid winter? That extended period of unusually wide-spread freezing took a huge toll on the economy. Factories were shut down for weeks on end, shipping and receiving products were delayed significantly, and retail sales were disrupted by lack of shoppers venturing out into the cold.
For many, these temporary factors are more than enough to explain a huge drop in economic growth. In fact, the economy has been showing steady signs of gains since the seasons have changed. Employers are hiring again, manufacturing is back on-line, and even auto sales have increased at a quick pace. “We had a very bad first quarter, but the first quarter is history,” says Craig Alexander, chief economist at TD Bank. “It doesn’t tell you where the economy is going.” While many are optimistic the growth can, and likely will, continue we still do face a long road ahead.
Read more about the economic outlook at: http://cnsnews.com/news/article/why-grim-us-economic-picture-brightening