CFOs must focus on agility in scenario planning amid government shutdown, says economist | Fortune
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CFOs must focus on agility in scenario planning amid government shutdown, says economist | Fortune
"Shutdowns can delay contracts, squeeze liquidity, and reveal how unprepared many companies are to absorb shocks, Gainer said. "What we're telling clients is that planning for resilience isn't a reaction-it's a strategy for survival." Due to the government shutdown, key economic data-such as the September jobs numbers scheduled for release on Friday by the Bureau of Labor Statistics-will be halted. U.S. employers added just 22,000 jobs in August, as the labor market continued to cool."
""The absence of key data like the jobs report would temporarily blind business leaders, policymakers, and investors, heightening volatility and reinforcing the Fed's data-dependency dilemma," Daco said. It would also amplify economic uncertainty at a time when the economy is showing mixed signals, he added. Regarding the impact on companies, Daco said that businesses rely on official data to inform hiring, investment, and pricing decisions. "A shutdown-induced data blackout undermines confidence and increases planning risk," he said."
Government shutdowns halt release of key economic data and can delay contracts, squeeze liquidity, and expose corporate unpreparedness for shocks. Disruption has become a constant—ranging from geopolitical tensions to regulatory paralysis—while many companies still treat events as isolated. The suspension of Bureau of Labor Statistics releases removes crucial inputs for hiring, investment, and pricing decisions, increasing market volatility and complicating central bank policy. A shutdown-induced data blackout undermines business confidence, raises planning risk, and adds operational friction as employers show cooling hiring and elevated job-cut announcements amid a softer labor market.
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