CNBC: Sandy's Effect On Economy
What will Hurricane Sandy's effect be on the economy? I spent a few minutes discussing this issue with Kelly Evans and Ross Westgate recently. The impact of Sandy is likely to be far less economically speaking than Category 5 hurricanes like Andrew or Katrina which caused extensive structural damage.
Most of the impact of Sandy is flooding which will cleaned up fairly quickly. Look for a 2% clip to retail sales in November and then a recovery in December. However, with GDP already running at very subpar growth rates - this impact could be enough keep GDP hovering below 2% growth for the year.