Today's Scoop:

Hey friends - hope you had a great weekend. Make sure to catch up with our Weekly Scoop, and don’t miss our Explained about who gets hurt in a government shutdown.

Here’s what you need to know today…

1. Congress extended the deadline for the government shutdown.

2. Consumer spending keeps slowing as living costs keep climbing.

3. US manufacturing might be coming out of recession.

S&P 500: 4,288.39
1Mo: -5% | 1Yr: +17% | 5Yr: +49%

The market ended flat today after the excitement about avoiding a shutdown faded. Congress gave themselves six more weeks of negotiations, but a shutdown is still possible.

The government is still running as usual. Congress passed a Continuing Resolution [🤓] bill to prevent a government shutdown just hours before the September 30th midnight deadline, extending government funding through November 17. It includes natural disaster aid and measures to keep the Federal Aviation Administration operational but does not provide additional funding for things like border security or aid to Ukraine. The government might still shut down if Congress can’t agree on a spending plan by November 17th.

Consumer spending keeps slowing as living costs keep rising. The Commerce Department reported personal consumption expenditures increased by 0.4% in August, far slower than the 0.9% in July. Higher prices on gas and groceries have strained budgets. Policymakers’ preferred inflation gauge rose 0.4% in August but only 0.1% when excluding food and energy costs. The Personal Consumption Expenditures Price Index (PCE) shows that inflation for most goods and services is closer to normal levels, but food and gas prices remain critical challenges.

The US manufacturing sector might be making a comeback. Both production and employment increased in September, according to the Institute for Supply Management. The manufacturing Purchasing Managers' Index rose to 49.0, the highest figure since November 2022. Despite the improvement, it marked the 11th straight month of manufacturing contraction, the longest stretch since the 2007-2009 Great Recession. Rising fuel and supply costs remain concerns across multiple industries, but ISM’s prices index showed significant improvement last month.

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• Tesla under scrutiny for racial discrimination

• United Airlines boosted pilot pay by 40%

• Ford clashes with its autoworkers union

• BP loses another leader

• Carnival Cruise reaches record ticket sales

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What is a Continuing Resolution?

When Congress needs a last-minute extension for their main assignment, they pass a Continuing Resolution. A Continuing Resolution (CR) is a temporary funding measure used by the US Congress to keep the federal government running when the annual budget hasn't been finalized by the start of the fiscal year (October 1).

Instead of passing a full budget, Congress approves a CR to provide funds for a short period, allowing more time to negotiate and finalize the budget details. It typically maintains the previous year's funding levels for agencies and programs.

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