Local Areas Set for Cuts as Overall Impact Muted: Economy

Government spending cuts set to take effect this week will be felt at the local level as everyone from defense contractors in Virginia to waitresses in New Mexico take a hit. The overall impact on the U.S. economy may be more muted.

“There is pain that is going to be spread around,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC, in Charlotte, North Carolina. “Areas that have a great deal of exposure to government, which did pretty well during the recession, are now very much at risk.”