'Extreme' Texas heat could cost state businesses over $9 billion: report

Residents of Texas are opting to stay inside as "extreme heat" persists, according to a Saturday, July 29 Business Insider report, and last month, the National Weather Service predicted "no end in sight" for the heat wave plaguing the Lone Star State.

As a result, the state could potentially suffer a $9.5 billion economic blow, Insider reports.

Per Insider, The Wall Street Journal recently interviewed Economist Ray Perryman, who said such a massive hit is "equivalent to a 0.47% lower growth rate."

READ MORE: 'No end in sight' for massive heat wave plaguing Texas, New Mexico: NWS

Gusto Economist Luke Pardue told the news outlet, "The reduction in economic activity that we're seeing right now is second only to what we've seen during the pandemic in terms of its effect on small business activity. The summer was supposed to be this great time when everything could be outdoors and then it could kind of be a boon to businesses that are normally indoors. And then we're seeing, long term, this opposite shift, where during the summer, there's all this extreme heat."

The report notes that even beyond Texas, "Americans are also paying more to stay cool. According to the The National Energy Assistance Directors Association, home energy bills are estimated to increase by 11.7% this summer to $578, compared to $517 last summer."

Chris Lafakis, Moody's Analytics' director of economic research told CNN earlier this week, "The recent heat waves and scorching summer temperatures demonstrate the economic cost of heat stress. Heat waves can cause mortality and produce disruptions in business continuity. Heat waves can also stress regional power grids, driving up the cost and availability of space cooling."

READ MORE: Texas’ power grid operator ERCOT calls for energy conservation as extreme heat spikes electricity demand

Business Insider's full report is available at this link. CNN's report is here.