Wed, 15 Oct 2025

Wed, 15 Oct 2025 As US shutdown starts to bite, how much could it hit economy?

As workers start to miss pay, the impact of the shutdown will start to ripple out across industries.

* Government employee Michael Galletly from Utah has been on unpaid leave since the start of the government shutdown and is concerned about making ends meet.
* He estimates that he can survive for 2-3 months without pay, but doesn't know how long the shutdown will last.
* The impact of the shutdown is already being felt across the economy, with business and consumer confidence dropping.
* Analysts say that the delay or suspension of economic data releases is adding to uncertainty, prompting firms to put spending decisions on hold.
* Government employee Michael Galletly has had to pull back his purchases and has applied for unemployment insurance.
* Analysts project a hit to quarterly growth of around 0.2 percentage points per week, but this year's clash carries unusual risks due to the Trump administration's threats and the slowing economy.
* The impact of a short shutdown is typically temporary and limited, but a protracted shutdown could derail economic growth.
* The White House Council of Economic Advisers estimates that a month-long shutdown could lead to $30bn in lost consumer spending.
* Families affected by the shutdown are already feeling the pinch, with some canceling plans and others reaching out to banks for accommodation.
* The Washington DC region is expected to face severe repercussions due to its high concentration of federal employees.
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