Sandy Expected To Shave As Much As One Half Of One Percent Off 2012 Economic Growth

Monday, November 05, 2012 07:29
Sandy Expected To Shave As Much As One Half Of One Percent Off 2012 Economic Growth

Tags: Economic Outlook | economy | markets

Economic effects of Hurricane Sandy are being felt beyond storm-hit areas as businesses face delays in getting merchandise out of closed ports and the possibility of canceled orders as a result.

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Just as retailers bring their final shipments into stores for the holiday season, they are facing backups in the supply chain.
Fedex has rented tankers to fuel its delivery trucks as commercial gas stations face gas shortages.
Major railroad company CSX has advised customers to expect delays of 72 hours on shipment deliveries.
Analysts expect the storm to trim one half of one percent off fourth quarter economic growth.
With an already low expectation of only 1% to 2% growth, half of one percent would be a significant hit.
Although economic losses will still be significantly lower than those from Katrina, Sandy hit in the most densely populated area of the country.
Grocery stores facing such delays may be in trouble since their goods are perishable and road repair enabling truck deliveries is still unpredictable.
At this point, it’s too late to replenish inventory for the holidays. Stores that lost all their inventory to the storm or that are facing being closed for two weeks may find their sales irreparably impacted.

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