Continued Cold Keeps Businesses at a Halt : Weather: Economists say record lows gripping the East and Midwest could cost the nation billions of dollars.

The record low temperatures gripping much of the East and Midwest began to ease Thursday, but many businesses continued to face weather-related disruptions as snowbound cities dug themselves out and utilities strained to keep up with demand.

In Kentucky, Pennsylvania and the District of Columbia, economic activity was at a virtual halt as local authorities declared states of emergency and workers stayed home.

Transportation-related businesses were especially hard hit, with United Parcel Service alone forced to spend $65 million to deal with the emergency even as it lost $52 million in business.

Still, it was more or less business as usual in many places, including New York City. Economists said the weather might ultimately cost the national economy billions of dollars. But they noted that many business will be able to make up their losses later in the year.

“This is not a knockout punch for the economic recovery,” said Ken Goldstein, an economist with the Conference Board, a business research group. “More like a light jab.”

An Arctic air mass stretching from Alabama to Maine and as far west as Minnesota produced record low temperatures Wednesday in many areas, with the mercury falling to 36 below zero in Whiteland, Ind.; 2 below in New York, and 4 below in Washington.

Electric utilities that imposed blackouts Wednesday were able to avoid them Thursday, with temperatures rising above zero and residents and businesses responding to calls for conservation.

But in the Ohio River Valley, where the extreme cold was immediately preceded by a major snowstorm, many problems remained. Highways were closed across Kentucky, and many businesses were shuttered in the absence of both employees and supplies.

Three Ford Motor Co. plants--two in Louisville, Ky., and one in Michigan--were closed Thursday, and 10 to 11 others were on short shifts, a spokesman said. General Motors Corp. said three factories were on reduced schedules but that the situation was improving.

United Parcel, which has its main hub in Louisville, has been in crisis mode since Tuesday. On that day, only 150 of 9,000 employees made it to work and all planes were grounded. A spokeswoman said the company had contacted 100,000 affected customers; UPS leased 60 Lear jets to help clear the package backlog.

Washington was a virtual ghost town Thursday after Mayor Sharon Pratt Kelly ordered all nonessential businesses to close. Almost every retail shop, business office and law firm was affected.

Economists noted that most companies will be able to make up lost business later, especially if the cold weather does not persist. Still, the snap could put a temporary damper on the reviving construction and real estate industries and on retailing, said David Pitcher, corporate economist at Bell Atlantic Corp. in Philadelphia.

Restaurants and other establishments that cater to immediate needs will probably be the most affected, he said. In addition, many municipalities are facing strains because they have exhausted their snow-removal budgets.

For some businesses, though, the weather is a boon. Bell Atlantic has had a big increase in calling volume. Morton Salt is having a banner year, as are hardware suppliers and tow truck operators.

Times staff writer Ralph Vartabedian in Washington contributed to this report.