The ongoing government shutdown has resulted in a growing number of economic reports being overlooked, leading to an increasing data deficit that may cloud governance decisions. The shutdown began on October 1, as the gridlock between Democratic and Republican representatives prevented reaching a funding agreement, shuttering substantial portions of federal operations, including agencies like the Bureau of Labor Statistics and the Census Bureau.
Predictions indicate that the deadlock is unlikely to end in the near future, with betting markets hinting at the possibility of the shutdown extending for at least a few more weeks, as reported by Polymarket. Now on its 20th day, this shutdown is the third-longest in history, surpassing the partial shutdowns of 2018 and 1995 that lasted 34 and 21 days respectively. The current one is categorized as a "full" shutdown since Congress has not approved funding for any departments, although critical operations like military and Social Security payments continue.
The absence of updated economic information is leading to a heightened risk of miscalculations made by policymakers and investors. The reports that were originally scheduled for October release have either been postponed indefinitely or completely skipped due to the shutdown, triggering concerns among economists that the data for October might be permanently missed unless the government resumes operations soon.