Lack of data on government shutdown blurs US economy insights

"Data interruption comes at a particularly uncertain time as policymakers need more data now than less. From Wall Street trading floors to the United States Federal Reserve to economists sipping coffee in their home offices, the first Friday morning of the month typically brings a quiet hush around 8:30am Eastern time in the US [12:30 GMT] as everyone awaits the Labor Department's crucial monthly jobs report. But with the government shut down, no information was released on Friday about hiring in September."

"The interruption in the data has occurred at a particularly uncertain time, when policymakers at the Federal Reserve and Wall Street investors would need more data on the economy, rather than less. Hiring has ground nearly to a halt, threatening to drag down the broader economy. Yet at the same time, consumers particularly higher-income earners are still spending, and some businesses are ramping up investments in data centres developing artificial intelligence models. Whether that is enough to revive hiring remains to be seen."

"It's the first time since a government shutdown in 2013 that the jobs report has been delayed. During the 2018-2019 partial government closure, the Labor Department was one of several agencies that remained open because Congress had agreed to fund them. September's jobs figures will be released eventually, once the shutdown ends."

A government shutdown stopped the release of the Labor Department's September jobs report, removing a key data point used by investors, economists, and the Federal Reserve. The absence of hiring data occurs at a fragile moment when policymakers need more information, not less. Hiring has nearly stalled and risks weakening the broader economy, even as higher-income consumers continue spending and some firms increase investments in data centres for artificial intelligence. The jobs report delay is the first since 2013; past partial closures left some agencies open when Congress provided funding. The September figures will be published once the shutdown ends.

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