Jeffrey Viksjo, CFA
jeffrey.viksjo@ogorek.com

One unique element of the Federal shutdown is that it is preventing us from knowing what the impact of the Federal shutdown is on the economy; important data from the commerce department (such as December retail sales figures, and fourth quarter GDP) has not been released due to the furloughing of employees.

Estimates, however, point to the Federal shutdown being a significant drag on the economy, shaving as much as 0.2% off of GDP growth every two weeks. This includes the impact of the 380,000 furloughed employees and the additional 420,000 employees working without pay, small businesses that transact with the government, reduced travel from federal employees, and on and on. At a time when uncertainty already reigns with trade wars and market volatility, the shutdown is hardly the tonic the U.S economy needs.

Source: The Wall Street Journal

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