“The U.S. government shutdown has disrupted key economic data collection, leaving policymakers and markets blind.”

Question

After the longest government shutdown in U.S. history, multiple agencies like the Bureau of Economic Analysis (BEA) and the Bureau of Labor Statistics (BLS) reported that critical data-series such as employment, inflation, consumer spending and GDP were delayed or incomplete. As a result, the article explains, economists and the Federal Reserve may be operating “in the fog” because their usual indicators are unavailable.

Experts quoted note that this lack of data could hamper effective policy decisions and extend economic uncertainty. However, the claim that all data stopped entirely or that markets cannot adjust is over-stated, since some private-sector sources and partial federal releases continue to provide information.

Answer 1

I do think the government's shutdown disrupted key economic data, which affected policymakers and markets. CBC News put out an article saying, "Throughout the 43-day shutdown, key economic data was not gathered and the release of crucial economic indicators was delayed." Job and inflation data for October may never be released. The lack of data leaves business and policymakers not know what's going on. In a CNN article, they said, “Monthly employment reports for September and October haven’t been released, and neither has the first estimate of third-quarter gross domestic product, which captures all the goods and services produced in the economy. Economic data used by business leaders and the Federal Reserve was suspended during the shutdown. The White House Press Secretary Karoline Leavitt said, “All of that economic data released will be permanently impaired, leaving our policymakers at the Fed flying blind at a critical period.”