Hurricane Harvey's Economic Impact Could Top $15B

BERWYN, Pa. — Harvey may be lessening its hold on the southeastern region of Texas, but the economic impact of the storm is still unknown.

Planalytics estimates that the storm's economic impact could top $15 billion — similar to the impact felt from Hurricane Charley in 2004, the last Category 4 hurricane to make landfall in the United States.

"Harvey is poised to have the same, if not larger economic impacts, and is likely to be a top 10 (if not top five) storm in these terms — but we won't know for sure until it's over," Planalytics reported.

Hurricane Harvey made landfall in Texas on Aug. 25 as a Category 4 storm. It later weakened to a tropical storm.

According to the business weather intelligence company, Hurricane Ike in 2008 was one of the largest to impact Texas, with estimated impacts of $28 billion, although Ike also impacted Louisiana and Mississippi. 

A good reference point for Houston is Tropical Storm Allison in 2001, which dropped 28 inches of rain in less than 24 hours, resulting in an estimated $5-billion impact to Houston, it said.

Planalytics' initial estimate on lost sales in the consumer/retail sector will be $1 billion. This represents revenue that is lost and will not be made up later, it reported, adding "all major businesses will be impacted."

Notably, restaurants will take the biggest hit as these businesses do not make up for lost traffic, according to Planalytics.

"The total impact will take place over time — not just now or this week," Planalytics report stated. "Following major weather events such as this, the economic impacts are felt in the coming weeks and months as consumers and businesses look to repair/rebuild based on their own individual situation. Near-term economic impacts will be felt outside of Texas."