The ongoing US government shutdown is having a more severe impact on the economy than initially estimated, according to White House economic adviser Kevin Hassett. The shutdown, which has lasted for 38 days, is the longest in US history and is particularly affecting the travel, hotel, and construction sectors. Hassett warned that the shutdown could cut fourth-quarter GDP growth in half, with estimates suggesting a reduction of 1% to 1.5% in growth.

The travel and leisure industry is being heavily hit, with US airlines canceling around 700 flights at 40 major airports on Friday due to air traffic controller staff shortages. The Federal Aviation Administration (FAA) has ordered a 4% reduction in flights, which is set to increase to 10% by next week if the shutdown continues. This has significant implications for the economy, with Hassett noting that if the shutdown affects air travel employees’ wages for another week or two, the sector could face a near-term downturn.

The shutdown is also affecting other industries, including construction, where projects are being delayed or put on hold due to the lack of government approvals and inspections. The economic impact of the shutdown is being felt across the country, with many businesses and individuals affected by the lack of government services.

The US government shutdown is a result of a dispute over funding for a border wall between the US and Mexico. The shutdown has resulted in the furlough of hundreds of thousands of government employees, with many more working without pay. The economic impact of the shutdown is likely to continue to grow unless a resolution is reached soon.

In terms of economic growth, the shutdown is expected to have a significant impact on the fourth quarter, with estimates suggesting that growth could be reduced by as much as half. This would be a significant blow to the US economy, which has been experiencing a period of growth in recent years. The shutdown is also having a impact on consumer and business confidence, which could have long-term implications for the economy.

Overall, the US government shutdown is having a significant impact on the economy, with the travel, hotel, and construction sectors being particularly affected. The shutdown is also having a broader impact on the economy, with implications for economic growth, consumer and business confidence, and the overall well-being of the country.