Storm's cost may hit $50B; rebuilding to ease blow

Source: AP-Excite

By CHRISTOPHER S. RUGABER and MARTIN CRUTSINGER

WASHINGTON (AP) - Superstorm Sandy will end up causing about $20 billion in property damages and $10 billion to $30 billion more in lost business, according to IHS Global Insight, a forecasting firm.

In the long run, the devastation the storm inflicted on New York City and other parts of the Northeast will barely nick the U.S. economy. That's the view of economists who say a slightly slower economy in coming weeks will likely be matched by reconstruction and repairs that will contribute to growth over time.

The short-term blow to the economy, though, could subtract about 0.6 percentage point from U.S. economic growth in the October-December quarter, IHS says. Retailers, airlines and home construction firms will likely lose some business.

The storm cut power to more than 8 million homes, shut down 70 percent of East Coast oil refineries and inflicted worse-than-expected damage in the New York metro area. That area produces about 10 percent of U.S. economic output.

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Read more: http://apnews.excite.com/article/20121030/DA285BQ00.html

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The streets surrounding the New York Stock Exchange are deserted as financial markets remain closed for the second day due to superstorm Sandy, Tuesday, Oct. 30, 2012. Superstorm Sandy could mean a slower economy and higher gas prices in coming months, though reconstruction will help cushion the economic blow (AP Photo/Richard Drew)