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KATRINA UPDATE: GDP growth will slow

Published Tuesday, September 20, 2005

The damage Hurricane Katrina inflicted on the oil and refining infrastructure will slow down the real growth rate of the U.S. economy in the short term as consumers spend more on energy and less on general goods, economists say. This will slacken freight growth on a national level. But on a microeconomic level, trucking around the hurricane-afflicted Gulf region will get a boost. U.S. economic growth will drop from 3 to 4%, to 2 to 3% until mid-2006, predicted Associated General Contractors of America (AGC) chief economist Ken Simonson. “The most important effect on trucking ...

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