(3 Minutes Read)
Apart from reduced consumer spending, the shutdown would reduce annualized real gross domestic product growth in the quarter by about 0.1%, Mark Zandi, chief economist at Moody’s Analytics, told ABC News in a statement.
Shutdown continues in US, affecting all segments of the society, particularly business. Businesses are hesitant to take actions such as major expansions or hiring sprees, while consumers could seek to avoid big-ticket purchases, some experts said.
The absence of economic data makes the economic trajectory more uncertain as it forces investors and business executives to be more cautious. Also,the Federal Reserve is set to announce its next interest rate decision on Oct. 29, following a meeting between members of the FOMC. If the government shutdown remains in place ahead of that meeting, it could leave Fed officials ill-equipped to set the best policy, Hamrick said.
An interruption of data releases could leave investors unaware of possible improvement in the economy. Some experts noted the continued availability of private sector data sources, though observers typically view such data as inferior to government statistics.
Apart from reduced consumer spending, the shutdown would reduce annualized real gross domestic product growth in the quarter by about 0.1%, Mark Zandi, chief economist at Moody’s Analytics, told ABC News in a statement.
Read Also;
https://trendsnafrica.com/us-federal-government-enters-official-shutdown/
For reference, the economy grew by an average annualized rate of 1.6% over the first half of 2025, meaning it would take several weeks of a government shutdown for notable damage to be incurred. An absence of economic data could make it more difficult for observers to identify the economic impact of the shutdown, some experts said.
