The US economy: waiting for the chop

© Khunaspix Dreamstime.

With the clock ticking on sequestration, the US is preparing to feel the full weight of the $1.2tn crackdown. According to this article in The Economist, thoughts are now turning to the damaging effects on the supply chain, with trade groups foreseeing  – among other consequences – a decrease in air traffic of up to 10%, with cargo most affected, due to the planned furlough of 47,000 federal employees. Of course, every trade group is crying foul, with customs officers warning of huge delays at border crossings, while The National Cattlemen’s Beef Association claims the furloughing of meat, poultry and egg safety inspectors will cost $10 billion in lost production.