Market Weekly: Sep 11-Sep-15-2017

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Hurricane Harvey probably shaved 1% from third-quarter growth, Goldman Sachs says

Costs from the storm, which hammered Texas last month, will eclipse those associated with 2012’s Hurricane Sandy, the bank’s analysts wrote in a research note. Using a model that examined the 35 largest hurricanes to strike the U.S. in the aftermath of World War II, Goldman found that major natural disasters correlated closely with a “temporary slowdown” in key economic gauges.

“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, adding that the main impact would be felt in consumer spending, business inventories, housing and the energy sectors.