US economy faces hefty hit if government shuts down
WASHINGTON (AFP) - A US government shutdown would hit an economy struggling to sustain its post-crisis rebound, but experts say the impact will only be substantial if Washington's political paralysis lasts several weeks.
More than 800,000 non-essential federal workers were to be placed on unpaid furloughs beginning midnight (12 noon Singapore time), due to the impasse over funding for fiscal 2014, which begins on October 1.
Many offices will be closed, and government services will be frozen or cut back in many areas, with payments to contractors also delayed.
That would cut the flow of money into the economy by hundreds of millions of dollars each day, with the impact accumulating the longer the shutdown goes on.