The first 12 days of the federal government shutdown and debate over raising the nation’s debt ceiling cost the private sector 120,000 jobs, the White House estimates in a new report from President Barack Obama’s Council of Economic Advisers.
The fiscal battles also led to a 0.25% reduction in fourth-quarter GDP growth, according to the report. The White House analysis, which consisted of daily and weekly economic data through Oct. 12, displayed growing weakness in retail sales, consumer and economic confidence, and mortgage applications, among other areas.
The White House warned that because the shutdown ended and the debt ceiling was raised on Oct. 16, five days after the last date of the analysis, there could be further economic consequences.
“This all just really underscores how unnecessary and harmful the shutdown and the brinksmanship was for the economy, why it’s important to avoid repeating it, and instead consider jobs that are adding to growth, not subtracting,” said Jason Furman, chairman of the Council of Economic Advisers.
From the report, here’s a look at the Weekly Economic Index, which shows a 1.6% reduction in GDP growth if the shutdown were sustained for the entire fourth quarter:
Retail sales’ year-over-year growth was down:
Unemployment insurance claims were up:
Economic confidence plunged in three different, respective indexes:
And, finally, a look at the Weekly Economic Index combined on a chart with monthly changes in total and private employment:
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