Econ Tracker

MT to feel economic impact from Hurricane Sandy

Posted: Oct 29, 2012 9:08 PM by Angela Douglas - MTN News

BILLINGS- Hurricane Sandy is expected to affect approximately 50 million people and may cause as much as $20 billion in economic damage.

The U.S. Stock and Bond exchange closed Monday and has been cancelled for Tuesday as well.

This is the first time since 1888 that U.S. stock trading has been shutdown for consecutive days due to a weather event.

Chairman of Montana Board of Investments and Buchanan Capital Inc. founder, Gary Buchanan, says this news is bound to have a big impact on multiple industries.

For example, oil fell to a three month low Monday and gasoline went up after refineries along the east coast reduced operations due to Hurricane Sandy.

Another area that will see an impact: insurance companies. Out of the projected $20 billion dollars in damage, about half of that looks to be insured. So, insurance companies will see an impact with insured losses.

However, there will be a boost in retail industry when it comes to hardware stores and lumber stores.

Now, despite the fact that Montana is thousands of miles away from Hurricane Sandy, Buchanan says Montanans will still feel an impact, both positive and negative, from the storm.

"I would think that some of these impacts, whether it's the cost of gasoline on the short term or building materials in the longer term or interest rates, a disaster like this has an impact on people in Billings, Montana and Montana in general," projected Buchanan.

Another industry that will suffer a negative impact from Hurricane Sandy is the airlines. Nationwide 9,500 flights have been grounded by the storm.

It remains unknown if the markets will be back open on Wednesday.