Will the U.S. Economy Go Into Hibernation, Again?

By: Investment_U

Rachel Gearhart writes: The impact of this year’s bitter winter on the economy can be seen in this week’s chart. The chart compares the Citigroup U.S. Economic Surprise Index for 2014 to the average of 2010-2013.

The index compares actual market data to market expectations.

The 2013-2014 colder-than-usual winter shattered low temp records and led to the coldest March in more than a decade in 48 states. The weather put the economy on ice, too: in April, the index fell to negative 45.9. This was the lowest level since July 2012.

But recently the economy has drastically begun to correct itself, and the index reflects that, too.

Two weeks ago, after being negative for the majority of the past seven months, the index rose to a positive 47.

While the Citigroup index seems to be rising as we look to the end of 2014, the Farmer’s Almanac forecasts a similar polar vortex for 2015. If this occurs, expect to see another (though hopefully less dramatic) drop in the index at the beginning of next year.

Source: http://www.investmentu.com/article/detail/39956/polar-vortex-citigroup-surprise-economic-index

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