Hurricanes expected to have minimal economic impact

A UCLA Anderson School of Business forecast released last week reports that Hurricanes Katrina and Rita will have a minimal impact on the U.S. economy. The forecast predicts that Hurricane Katrina will reduce the U.S. gross domestic product by 1.5%. The report also notes that spending for rebuilding should boost next year's GDP by almost as much.

Meanwhile, the Institute for Supply Management (ISM) is scheduled to give investors its perspective on the post-Katrina economy today, according to the Associated Press (AP) Wire Service. Today the ISM is expected to release its manufacturing index, a measure of the nation's industrial activity, which is predicted to come in at 52, down from 53.6.

On Wednesday, ISM is also scheduled to release its services index, which measures the health of the nation's service sector. This index is expected to come in at lower than August figures. In the job creation report also due out this week, economists are looking for declines, as well, in excess of 170,000 jobs, according to the Associated Press.

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