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    Home»Business»Business groups warn government shutdown harming economy and growth
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    Business groups warn government shutdown harming economy and growth

    adminBy adminOctober 17, 2025No Comments4 Mins Read
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    Horizon head of research and quantitative strategies Mike Dickson assesses stumbling stocks caused by a regional bank scare and China fears on ‘The Claman Countdown.’

    Business groups are expressing concern that the ongoing government shutdown is having negative impacts on economic activity and the ability of firms to operate and grow.

    The U.S. Chamber of Commerce on Thursday warned the impact of the government shutdown, which began on Oct. 1, is beginning to have an impact on businesses, workers and the overall economy as it drags on.

    “The government shutdown is harming small businesses and costing American economic growth that can’t be recovered,” said Neil Bradley, EVP and chief policy officer at the U.S. Chamber of Commerce.

    “This shutdown is already one of the longest, and there doesn’t appear to be a quick resolution in sight. The impacts to businesses are beginning to pile up, and impacting both their current and future growth. Businesses need government to function,” Bradley added.

    BESSENT SAYS GOVERNMENT SHUTDOWN ‘STARTING TO CUT INTO MUSCLE’ AND ECONOMY MAY BE LOSING BILLIONS PER DAY

    A “closed” signage outside the Capitol Visitors Center at the U.S. Capitol in Washington, DC, US, on Wednesday, Oct. 1, 2025. (Kent Nishimura/Bloomberg/Getty Images / Getty Images)

    Bradley said the Chamber hosted a fly-in in D.C. last week that allowed small businesses to meet with lawmakers and their staffers to discuss their priorities. 

    One such business owner was Murphy’s Naturals CEO Philip Freeman, whose firm is based in Raleigh, N.C., and makes mosquito and tick repellents using natural ingredients. Freeman said the shutdown is delaying regulatory approvals.

    “We may not feel it right away, but the backlog that is generated by the shutdown will last long beyond when everything is cleared up and there’s no longer a shutdown. That means that the extensive backlog of labels submitted to the U.S. EPA will be more extensive and take even longer to clear,” Freeman explained.

    TRUMP OFFICIAL SAYS FEDERAL JOB CUTS WILL TOP 10K DURING SHUTDOWN AS JUDGE PUTS FIRINGS ON HOLD

    Clouds above the U.S. Capitol dome

    The government shutdown began on Oct. 1, 2025. (Bill Clark/CQ-Roll Call, Inc/Getty Images / Getty Images)

    Other business groups have joined in the calls for the government shutdown to end, while highlighting impacts on their respective industries due to the disruption of the routine operations of federal agencies.

    “An open, functioning federal government allows manufacturers to get innovative products approved, next-generation facilities inspected and permitting decisions made,” National Association of Manufacturers president and CEO Jay Timmons told FOX Business. 

    PREDICTION MARKETS SEE CLOUDY OUTLOOK AS TRADERS BET ON EXTENDED SHUTDOWN

    The American Petroleum Institute (API) issued a warning after the shutdown began that it could create a more challenging regulatory environment for businesses to navigate while also delaying regulatory approvals for energy projects.

    “The American oil and natural gas industry’s mission of delivering reliable energy depends on a functioning federal gov’t,” the group wrote in a post on X. “Prolonging this shutdown risks delaying critical projects & adding regulatory uncertainty.”

    Treasury Secretary Scott Bessent

    Treasury Secretary Scott Bessent urged Democrats to vote to end the government shutdown. (Elizabeth Frantz/Reuters / Reuters Photos)

    Treasury Secretary Scott Bessent acknowledged the economic toll of the shutdown this week, saying that the ongoing shutdown is “starting to cut into muscle” in terms of the economy, which the Treasury indicated could amount to about $15 billion a week.

    Bessent urged Senate Democrats to stop blocking a continuing resolution that would restore funding and reopen the government for a short period of time to allow the two sides to reach an agreement on spending levels.

    GET FOX BUSINESS ON THE GO BY CLICKING HERE

    Democrats are calling for the extension of health insurance subsidies under Obamacare that are due to expire at the end of this year.



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