AP NEWS

Worries grow about impact of a prolonged government shutdown

January 3, 2019
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House Majority Leader Kevin McCarthy, R-Calif., speaks to reporters as he returns to the Capitol from a meeting with President Donald Trump about border security and ending the partial government shutdown, in Washington, Wednesday, Jan. 2, 2019. (AP Photo/J. Scott Applewhite)

WASHINGTON (AP) — With President Donald Trump warning that it “could be a long time” before the partial shutdown of the government ends, concerns are rising about potential economic damage given that the shutdown is coinciding with other threats.

Most analysts don’t regard the shutdown alone as severe enough to imperil an economic expansion that has lasted nearly a decade. But should it drag into February, the slowdown in government activity could help shake confidence and cause businesses and consumers to stop spending.

“The shutdown is coming on top of lots of other problems — the trade war, the slump in the stock market, Brexit, Trump’s political problems,” said Mark Zandi, chief economist at Moody’s Analytics.

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