A letter signed by 768 individuals and 90 organisations, dated 18th February, has warned that the ‘severe challenges’ facing the federal statistical system, including lack of funds, risk ‘undermining economic decision-making and reducing efficiency in both the public and private sectors’.

Federal economic statistics in the US are primarily produced by the Bureau of Economic Analysis (BEA), the Bureau of Labor Statistics (BLS), and the Census Bureau.

The letter’s signatories said declining purchasing power, increasing costs of data acquisition and budgetary constraints has forced the agencies to defer upgrades to their work and make cuts. For example, the BLS recently announced it would reduce the sample size for the Current Population Survey – the key source of US unemployment statistics – by 8% due to funding shortfalls.

The letter stated: ‘We are gravely concerned that without intervention, these cuts will continue and even worsen, thus endangering our nation’s statistical infrastructure.’

Pointing to the UK’s drop in response rates for the Labour Force Survey and subsequent concerns over statistics, the letter said: ‘We run the risk of following other nation’s statistical systems into a fraught era of stuttering performance.’

The letter comes at a time when the Trump administration has proposed sweeping federal cuts in other areas, including medical and scientific research funding and the Institute of Education Sciences (IES), which researches US students’ progress.

William Beach, commissioner of the Bureau of Labor Statistics between 2019 and 2023, and an organiser of the letter, said: “Our nation’s economic statistics are the foundation, the key infrastructure, of critical, private and public decisions from government budgets and monetary policy to investments in factories and worker training – decisions that ripple through markets, shape economic growth and impact jobs nationwide.

“Ensuring these statistics are as comprehensive and accurate as possible is essential for a thriving economy, which is a goal that surely any Congress and administration would support.”

Tom Beers, executive director of the National Association for Business Economics, said: “Federal economic statistics power the macroeconomic dashboards of US businesses, equipping decision-makers with critical insights to navigate market trends, anticipate consumer behavior and develop effective strategies.

“From demand forecasting to workforce management, businesses rely on accurate, timely federal data to stay competitive.”