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New York City economy lost S$268 million from fizzled storm, transit shutdown

NEW YORK — New York City lost about US$200 million (S$268 million) in economic activity in the fizzled snow storm and decision to shut down the transit system, but it wasn't a crippling loss, according to a preliminary estimate from Moody's Analytics.

Pedestrians walk past closed businesses along Steinway Street, normally a busy commercial area, following a winter storm, Jan 27, 2015, in the Queens borough of New York. Photo: AP

Pedestrians walk past closed businesses along Steinway Street, normally a busy commercial area, following a winter storm, Jan 27, 2015, in the Queens borough of New York. Photo: AP

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NEW YORK — New York City lost about US$200 million (S$268 million) in economic activity in the fizzled snow storm and decision to shut down the transit system, but it wasn't a crippling loss, according to a preliminary estimate from Moody's Analytics.

Consumers who would have otherwise bought cars or made other major purchases will likely do so a day or two later, Moody's economist Adam Kamins said. And he noted that many employees forced to stay home yesterday (Jan 27) were able to telecommute.

"For example, a holiday where people aren't working would have a greater impact on the economic output than this storm," Mr Kamins said.

Mr Evan Gold, senior vice president for Planalytics, a firm that advises companies on weather issues, estimated the economic losses for the total Northeast, including New York, Philadelphia and Boston, at US$500 million.

"Now that does sound like a lot of money, but when you think about last year, where we had a polar vortex, several weeks of that, more population centres impacted as well as above-normal snowfall, last year's overall economic impact is pegged at anywhere from US$15 billion to US$50 billion," he said. "So in comparison, this is actually a relatively small event."

In New York, the biggest impact was on small businesses and hourly workers who rely on tips, such as taxi drivers and restaurant workers.

For them, the lost work time stung. Ms Lenice Ferguson, a baker at Insomnia Cookies said the shop is usually open until about 3am making deliveries. The bakery closed at about 10pm Monday.

"It's a big deal, because I only work three nights out of the week," the 26-year-old said. "My check is going to be short, and I have bills that I have to pay."

Subways, rail lines, bridges and tunnels were all closed Monday night. Residents were told to stay off the streets after 11pm or face fines. Transportation reopened yesterday morning after it was clear the storm was a bust in New York City, with most areas getting about 8 inches instead of the predicted 2 feet.

Mr Fausto Cabrera opened his Upper West Side barber shot yesterday morning but wasn't expecting many customers.

"There was nobody here yesterday and today, just look," he said, pointing to six empty barber chairs. "All I can do is wait."

Mayor Bill de Blasio said economic loss was much less than it would have been had the storm hit in full force, and that taking precautions helped the city get back online faster.

Moody's economist Kamins said that for the Northeast overall, the storm would have done about US$16 billion in damage had it hit full force. Instead, the impact will likely reach just US$1.25 billion.

"I will always err on the side of safety and caution," Mr de Blasio said yesterday. "We had consistently been getting reports talking about two feet or more of snow. To me it was a no-brainer, we had to take precautions to keep people safe."

Mr Shaon Chowdhury, a manager of Arthur Cab Leasing Corp, in Queens, said he didn't have a problem with the city's actions even though he lost about US$60,000 in revenue and expenses.

"If they did get 28 inches it would be a problem, so shutting down is a good idea," he said. "What happens if we did get 28 inches? It would have been hell."

New York City's 24,000 restaurants probably lost millions in revenue in total, said Mr Chris Hickey, regional director of New York City for the New York State Restaurant Association.

For the first time in the decade since it first opened a block north of Times Square, the TSQ brasserie deserted at mid-afternoon Monday. Business was down about 70 per cent.

"Never in my life was it like this — empty," said manager Mohi Hassan. AP

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