Fox Business: Will Cold Snap Chill the U.S. Economy?

With the holiday season officially behind us, the retail industry’s busiest season has come to a close. But now, the cold weather has industry experts asking if the expected cooldown in January will be amplified?

A recent Fox Business article notes that extreme weather events have always impacted the economy. Right now, states spanning the Midwest and East Coast are experiencing record lows, with more low temperatures on the way. That could be a bad sign for the economy—the Polar Vortex of 2013 and 2014 cost the U.S. economy about $4 billion, according to Planalytics. But that doesn’t necessarily mean that a major slowdown is about to start.

In an interview with Fox Business, Wells Fargo Securities Managing Director and Senior Economist said, “Right now, the impact is fairly minimal because we are coming off the holiday season and few areas have been shut down due to snow or ice.”

However, that can change with the weather. Back during the cold snap of 2013 and 2014, Fox Business recalls a research note from Goldman Sachs saying that colder-than-normal weather has the potential to slow down economic activity, especially in weather-sensitive industries.