Tags: Hurricane Harvey | hurricane harvey | hurricane | houston | texas | goldman sachs | economy

CNBC: Harvey One of Costliest Hurricanes in U.S. History

Image: CNBC: Harvey One of Costliest Hurricanes in U.S. History

(Photo by Spencer Platt/Getty Images)

By    |   Sunday, 10 September 2017 03:39 PM

Analysts say Hurricane Harvey could drag on third-quarter economic growth by a full percentage point, CNBC reported.

Costs from the storm will eclipse those associated with 2012's Hurricane Sandy, Goldman Sach's analysts wrote in a research note, the outlet reported.

The analysis also took Hurricane Irma into account, which was moving along Florida's Gulf coast Sunday — and could ultimately become the most expensive storm in the United States. 

"Modeling these effects, we estimate that hurricane-related disruptions could reduce 3Q GDP growth by as much as 1 percentage point," Goldman's analysts wrote, with the main impact in consumer spending, business inventories, housing and the energy sectors.

They added: "Given potentially sizeable growth effects from Harvey — and with Irma risks now moving to center stage — we are lowering our Q3 GDP tracking estimate by 0.8pp to +2.0 percent."

Also, the bank forecast a "meaningful drag" on growth indicators for the next two months, which could extend to a short-lived drag on September payrolls ranging from 20,000 to 100,000 jobs.

A jump in gas prices, the analysts predict, will add 0.2 percentage points to annual inflation.

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Analysts say Hurricane Harvey could drag on third-quarter economic growth by a full percentage point, CNBC reported.
hurricane harvey, hurricane, houston, texas, goldman sachs, economy
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2017-39-10
Sunday, 10 September 2017 03:39 PM
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