Hurricanes devastate the US economy
07/10/2017 12:00 am
[rtl]WASHINGTON (Reuters) -
The United States has seen several hurricanes in recent weeks that have destroyed infrastructure in some cities, with billions of dollars in damage, but some benefits to the world's largest economy.
Despite the material and human losses associated with the Harvey, Irma and Mariah hurricanes that hit several US cities, the economy has been able to make significant gains in several sectors thanks to these events.
US auto sales rebounded in September as consumers sought to replace their hurricane-damaged cars; Ford Motor Co. reported sales of cars in the United States up 8.7 percent year-on-year, and General Motors "By about 12 percent over the same period.
The data showed that sales of new cars in Houston jumped by 109 percent in the three weeks after Hurricane Harvey compared to the period before the hurricane.
A Reuters survey showed that sales of real cars in the United States rose to the highest level since July 2005, recording 18.57 million units in September, compared to 16.14 million a month earlier.
Hurricane benefits were not limited to car sales alone, with industrial activity in the United States recording the highest growth in 13 years in the past month.
Supply Institute (ISM) announced the Industrial PMI rose to 60.8 points in September, the highest since May 2004.
The report noted that Harvey and Irma had an impact on supply chains and the pricing of chemical products, with the fact that cyclones boosted sales, raised raw material prices and the delivery time of suppliers, which usually coincided with increased activity Industrial.
The third benefit of the US economy from hurricanes was the rise in oil exports to a record high recently, as demand from domestic refineries declined due to hurricanes.
The US Energy Information Administration announced that oil exports rose to 1.98 million barrels per day (bpd) in the week ending September 29, compared to a record level the previous week.
Destruction and Development
In terms of state, US Treasury Secretary Steve Menuchin said the damage caused by Hurricane Irma was too severe and would affect the US economy in the short term.
"The cyclone will have an impact on GDP in the short term and we will repair it over the long term," said Menuchin, according to the Wall Street Journal. "The reconstruction process will have a positive impact on GDP.
For its part, Goldman Sachs lowered its US economic growth forecast for the third quarter of this year by 1 percent due to hurricanes that have affected economic activity.
But the investment bank predicted a recovery in US economic growth in the fourth quarter of this year, with GDP rising 2.7 percent year-on-year.
The US economy grew 3.1 percent in the third quarter on a year-on-year basis.[/rtl]