21 Feb 2026 11:00 am
When it's not convenient to quote an economist to push an agenda.
Government shutdown tipped the scales
The main reason the economy slumped in the final three months of 2025, according to economists: the 43-day government shutdown last year, during which hundreds of thousands of federal workers were furloughed and federal funding for a range of programs came to a halt.
Gregory Daco, chief economist at consulting firm EY-Parthenon, in an email called the shutdown a "self-inflicted black eye."
"The disappointing end to the year largely reflected a self-inflicted drag from the longest government shutdown in U.S. history," he said.
The lapse in federal spending lasted for nearly half of the fourth quarter, stretching from October to early November. According to Friday's GDP report, the shutdown reduced fourth-quarter growth by about 1 percentage point, largely due to a reduction in federal government services. The shutdown also contributed to a steep drop in government spending in the fourth quarter.
Government shutdown tipped the scales
The main reason the economy slumped in the final three months of 2025, according to economists: the 43-day government shutdown last year, during which hundreds of thousands of federal workers were furloughed and federal funding for a range of programs came to a halt.
Gregory Daco, chief economist at consulting firm EY-Parthenon, in an email called the shutdown a "self-inflicted black eye."
"The disappointing end to the year largely reflected a self-inflicted drag from the longest government shutdown in U.S. history," he said.
The lapse in federal spending lasted for nearly half of the fourth quarter, stretching from October to early November. According to Friday's GDP report, the shutdown reduced fourth-quarter growth by about 1 percentage point, largely due to a reduction in federal government services. The shutdown also contributed to a steep drop in government spending in the fourth quarter.