Analysts say Hurricane Harvey could drag on third-quarter economic growth by a full percentage point, CNBC reported.
Costs from the storm will eclipse those associated with 2012's Hurricane Sandy, Goldman Sach's analysts wrote in a research note, the outlet reported.
The analysis also took Hurricane Irma into account, which was moving along Florida's Gulf coast Sunday — and could ultimately become the most expensive storm in the United States.
"Modeling these effects, we estimate that hurricane-related disruptions could reduce 3Q GDP growth by as much as 1 percentage point," Goldman's analysts wrote, with the main impact in consumer spending, business inventories, housing and the energy sectors.
They added: "Given potentially sizeable growth effects from Harvey — and with Irma risks now moving to center stage — we are lowering our Q3 GDP tracking estimate by 0.8pp to +2.0 percent."
Also, the bank forecast a "meaningful drag" on growth indicators for the next two months, which could extend to a short-lived drag on September payrolls ranging from 20,000 to 100,000 jobs.
A jump in gas prices, the analysts predict, will add 0.2 percentage points to annual inflation.