US won't release key economic data if government shuts down: Report

ISTANBUL

The US Labor Department said it will suspend its data releases – read carefully by economic actors for hints about the state of the economy – if the government shuts down in the coming days, news channel CNBC reported Monday.

The department said in a contingency plan released Friday that it was looking “to ensure that (Labor Department) agencies can perform an orderly suspension of programs and operations should a lapse occur, while continuing those limited activities authorized to continue during a lapse," according to the report.

The Bureau of Labor Statistics (BLS) “will suspend all operations,” the 73-page plan said. “Economic data that are scheduled to be released during the lapse will not be released.”

Although the department's purview is broad, investors will be particularly affected by data releases. A number of significant reports that the department and the Bureau of Labor Statistics are set to release soon could give crucial hints about the economic outlook and help Federal Reserve officials prepare for their October meeting.

The bureau is set to issue monthly nonfarm payrolls data on Friday, coming at a time when employment growth has been slowing significantly. This is just one of the many forthcoming reports that may be affected. Figures on initial jobless claims are also released by the department every Thursday.

Then, on Oct. 15, the consumer price index – a crucial measure of inflation and the final one the Fed will get before its Oct. 28–29 meeting – is set to be released.

The department also said that "all active data collection activities for BLS surveys will cease," suggesting that additional reports may be postponed if the closure continues, in addition to not publishing the reports.

“The BLS website will not be updated with new content or restored in the event of a technical failure during a lapse,” it said.

Congress is in the middle of a standoff as government funding is set to expire at the end of September. The Republican-controlled House passed a short-term bill to keep the government up and running through Nov. 21, but the Senate rejected the proposal as well as a separate Democratic effort.

Approximately 12 economic reports are released by the bureau every month, covering topics such as wages, import and export pricing, and other consumer and worker-related activities.