NYC economy lost $200M from fizzled storm, transit shutdown
NEW YORK (AP) — New York City lost about $200 million in economic activity in the fizzled snow storm and decision to shut down the transit system, but it wasn't a crippling loss, according to a preliminary estimate from Moody's Analytics.
Consumers who would have otherwise bought cars or made other major purchases will likely do so a day or two later, Moody's economist Adam Kamins said. And he noted that many employees forced to stay home today were able to telecommute.
"For example, a holiday where people aren't working would have a greater impact on the economic output than this storm," Kamins said.
Evan Gold, senior vice president for Planalytics, a firm that advises companies on weather issues, estimated the economic losses for the total Northeast, including New York, Philadelphia and Boston, at $500 million.
"Now that does sound like a lot of money, but when you think about last year, where we had a polar vortex, several weeks of that, more population centers impacted as well as above-normal snowfall, last year's overall economic impact is pegged at anywhere from $15 billion to $50 billion," he said. "So in comparison, this is actually a relatively small event."
In New York, the biggest impact was on small businesses and hourly workers who rely on tips, such as taxi drivers and restaurant workers.