A nonlinear generalisation of Principal Component Analysis (PCA) is applied
to the 500mb geopotential height field of the Northern Hemisphere extratro
pical atmosphere. It is found that the low-frequency variability of the mid
-troposphere is characterised by three distinct quasistationary states. The
states are described and compared to those obtained from applications of c
luster analyses and linear PCA to the height field. Evidence is provided th
at modes obtained through PCA (notably the Arctic Oscillation (AO)) are not
independent dynamical modes of variability of the Northern Hemisphere extr
atropics. Rather they arise as the optimal linear compromise between the pr
eferred quasi-stationary states of the circulation.