WASHINGTON — Storms that buried the Midwest this week and are delivering yet another blow to the Northeast will likely slow the U.S. economy only modestly, analysts say.
“Annoying as it all is, the effect on (growth) is going to be on the smaller side,” says David Resler, chief U.S. economist at Nomura Global Economics.
Economists surveyed last month by The Associated Press estimated the economy would grow at an annual pace of 3.4 percent in the first three months of 2011, up from less than 3 percent last year. Most aren’t ready to revise their forecasts to reflect weather- related slowdown at airlines, retailers and other businesses. Flight cancellations topped 5,000 for a second day Wednesday as ice and snow slowed airport activity across much of the nation, including Chicago’s O’Hare (above). Joseph LaVorgna, chief U.S. economist at Deutsche Bank, said weather will be only a “temporary depressant.” The Associated Press; AP photo
