... flights cancelled

WASHINGTON (AP):

Airlines cancelled thousands of flights and stranded travellers. Insurers braced for damages of up to US$5 billion. Retailers expected shrunken sales.

Hurricane Sandy caused disruptions for companies, travelers and consumers. But for the overall economy, damage from the storm is likely to be limited. And any economic growth lost to the storm in the short run will likely be restored once reconstruction begins, analysts say.

Preliminary estimates are that damage will range between $10 billion and $20 billion. That could top last year's Hurricane Irene, which cost $15.8 billion.

A costly affair

If so, Hurricane Sandy would be among the 10 most costly hurricanes in US history. But it would still be far below the worst, Hurricane Katrina, which cost US$108 billion and caused 1,200 deaths in 2005.

The economic impact could be more severe if the storm damages a port or a major manufacturing facility such as an oil refinery.