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U.S. economic pessimism ferments, shutdown hits U.S. manufacturing
In view of the failure of the US Congress to extend the government's spending authority before the deadline of September 30, 2013, public servants considered to be non-core sectors have been furloughed from Tuesday (October 1), and the impact has spread to the government in related departments suppliers and businesses. The U.S. government shutdown has caused the market to lose confidence in the upcoming debt ceiling negotiation process. In addition, it was announced that the recent U.S. growth rate was less than market expectations. The pessimism of the U.S. economy has fermented. United Technologies Corp. said on Wednesday it was preparing to furlough nearly 2,000 workers at its Sikorsky unit, which makes Black Hawk helicopters for the U.S. Department of Defense. In addition, United Technologies could furlough thousands of workers at its Pratt u0026 Whitney and UTC Aerospace units if the shutdown lasts for several weeks. Service companies are likely to bear the brunt of the shutdown, as many have shorter contracts. Joel Merriman, senior vice president of Washington-based cybersecurity specialist CSSS.NET, said the company lost some of its best employees who were reluctant to hold out until the federal budget battle was over, so they moved to the business world. Others didn't report because they didn't renew their contracts or didn't have the budget, Merriman said. For U.S. manufacturing, already unsettled by new health-care laws and a faltering U.S. economy, the shutdown will only make matters worse. After hitting a low of around 11.5 million in early 2010, U.S. manufacturing employment recovered to 12 million in mid-2012, but has stagnated since then.