Hurricane Milton's projected devastation in Florida is expected to have a significant impact on various sectors of the broader US economy. Approximately 3% of America's gross domestic product lies directly in the path of the hurricane, according to Ryan Sweet, chief US economist for Oxford Economics.
The potential effects of Hurricane Milton on the economy are far-reaching, with implications for jobs, travel, manufacturing, retail sales, housing, and more. Sweet estimates that the hurricane could reduce America's fourth-quarter GDP by more than a tenth of a percentage point, a notable figure considering the size of the $29 trillion economy.
The disruption caused by the hurricane could lead to canceled trips to popular destinations like Disney World, decreased home sales, and challenges in the oil supply chain, all of which could impact economic output.
Recent experience with Hurricane Helene, which hit the Southeast just two weeks ago, provides some insight into the potential job losses that could result from Milton's impact. Sweet estimates that Hurricane Helene could lead to 50,000 fewer jobs in the upcoming October US jobs report, with Hurricane Milton expected to have an even more significant effect on employment.
Despite the short-term challenges posed by the hurricanes, Sweet believes that the economy will eventually recover as jobs are restored and rebuilding efforts commence. While the immediate impact may be noticeable, the long-term outlook suggests that the economy will bounce back from the disruptions caused by the natural disasters.
