Photo: Justin Ivory on Twitter
Hurricane Sandy still hasn’t hit New York City, but it’s economic impact is already huge. The so-called “Frankenstorm” could cause up to $1 billion in physical damages. But that figure doesn’t even take into account the impact on consumer spending, cancelled flights or closed businesses.
Here’s how the hurricane has impacted the economy so far:
- People rushed to buy supplies from grocery stores, discount chains and home-improvement retailers. Many stores sold out of their supplies. This could negatively impact spending next month, because storm expenses are unplanned.
- New York City stores including Saks, Bloomingdale’s, Starbucks, Uniqlo, Macy’s and Gap have all shut down until further notice, meaning days of lost sales. Areas normally booming with tourists are now deserted.
- Businesses are also completely shut down in parts of New Jersey, Delaware, North Carolina and Maryland.
- Apple has about 78 stores affected by the hurricane, according to Brian Sozzi, senior equities analyst at NBG Productions. Many of these stores are now closed.
- Major airlines, including United, US Airways, Delta and American have cancelled 9,000 flights. Planes won’t be departing from or coming to major cities affected by the hurricane until at least tomorrow afternoon.
Hurricane Sandy is already making a big impact on the East Coast. Depending on how many days businesses remain boarded up, it could get even worse.
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