While individual workers will suffer from missing paychecks, the macroeconomic impact will be manageable. The shutdown would need to go on for much longer to impact growth meaningfully.
Should this shutdown — which is limited to nine of 15 federal agencies that represent less than a quarter of total government spending — push past the end of the month, it is estimated to be a mere 0.3 percentage point drag on first-quarter gross domestic product.
Disclosure: This Commentary represents a review of topics of possible interest to Pennsylvania Trust’s clients and is not personalized investment advice. It contains Pennsylvania Trust’s opinions, which may change following the date of publication. Information obtained from third-party sources is assumed to be reliable but is not guaranteed. No outcome – including performance – is guaranteed, due to various uncertainties and risks. This document is not a recommendation of any particular investment. Investment decisions for clients are made on an individualized basis and may be different from what is expressed here. Past performance is no guarantee of future results.