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US economy in the dark as shutdown cuts off crucial data

The Straits Times

|

October 31, 2025

US policymakers, financial institutions and business owners have been flying blind for almost a month as a government shutdown has stopped the release of crucial federal economic data ranging from the size of the labour force to the country's GDP.

The void was expected to deepen by Oct 30 as Washington held off publishing gross domestic product (GDP) numbers measuring the growth of the world's biggest economy in the July-September period.

The United States has already delayed reports on employment, trade, retail sales and others, only recalling some furloughed staff to produce key inflation figures needed for the government to calculate Social Security payments.

Congressional Republicans and Democrats remain at an impasse, each assigning blame to the other side over the shutdown with no quick end in sight and food aid for millions now at stake.

Analysts warn the growing information blackout could, in turn, cause businesses to lower hiring and investment.

"There's a huge demand right now for government data," said Ms Heather Long, chief economist at Navy Federal Credit Union. "Every industry is trying to figure out if the Federal Reserve is going to keep cutting interest rates."

The central bank's decisions hinge upon the economy's health, particularly inflation and the weakening jobs market.

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