US Economic Growth Accelerated by Warmer Weather
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Economic revival attributed to Spring's thaw
According to recent government and business reports, the U.S. economy is recovering from the cold season.
After two years of steady, but slow improvement, economic experts are projecting accelerated growth in 2014. The long and cold winter reduced consumer spending and factory hiring.
As temperatures continue to increase, the economy is quickly regaining momentum. Consumers are spending more and factories have started hiring as they become busier and busier. Banks are approving more loans to businesses. On the other hand, companies are planning to spend more on plants and equipment. These changes seem to be taking place all over the US.
According to Michael Dolega, TD Economics' senior economist, the chilling winter weather had an adverse effect on the economy. He expects the economy to bounce back now that consumers are coming out of hibernation.
A popular index that is based on key economic indicators such as consumer confidence, employment, interest rates and stocks has increased consistently for the third consecutive month.
The index increased to 100.9, a 0.8 gain, which is an indication of accelerated growth throughout spring and summer - according to Ken Goldstein.
Economics expect the economy to grow at a rate of at least 3 percent annually from April to June. In the first quarter, the economy grew by around 1.3 percent.
In March, factory output increased by 0.5 percent. The Federal Reserve also reported that manufacturing has also been picking up. This is perhaps a good indicator of what manufacturers are expecting - increased demand from consumers.
Motor vehicle sales are also picking up with Batesville Tool & Die reporting increased sales.
According to government reports regarding unemployment benefits, employers are preparing for stronger growth in the near future.
Swing trading options and binary options trading are also expected to experience increased activity as the U.S. economy improves.