Hurricanes will probably hurt the economy, but not for long

Irma heads northwest, flooding continues
Irma heads northwest, flooding continues

The back-to-back hurricanes that slammed the United States will probably make a dent in the economy, too.

That's according to Goldman Sachs, which says economic growth could slow by almost a full percentage point during the third quarter because of damage caused by Harvey and Irma. Goldman cut its forecast from 2.8% to 2%.

Economic growth came in at 3% last quarter, the fastest pace in two years. It was also more than double the pace of the first three months of 2017.

Related: The U.S. has been hit by two giant hurricanes. Here's the financial toll

Harvey, which flooded parts of Texas and Louisiana last month, is expected to be one of the costliest natural disasters ever in the United States. Moody's Analytics estimates it caused as much as $108 billion in economic and property damage.

Damage caused by Irma, meanwhile, will be much less than feared, according to Goldman.

Any dip in the economy will likely be temporary. And hurricane recovery efforts should help the economy rebound. Goldman Sachs raised its economic growth forecasts for the next three quarters and said that would more than make up for what was lost.

The recovery should include higher wages in construction, where workers are already hard to find, said Peter Boockvar, a chief market analyst at the Lindsey Group.

"If you have the skills, there is now plenty of work for you in Texas and Florida," he said.

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