The U.S. government has been shutdown today after Congress failed to come to a deal to fund the government. The shutdown has put 800,000 federal workers without a job and without paychecks. The shutdown could cost the economy nearly $1 billion a week in lost pay by furloughed federal workers. However, the 533 members of Congress will get paid due to the 27th amendment that prevents any Congress from altering its pay.
In housing news, CoreLogic reported today that its Home Price Index rose by 12.4% from August 2012 to August 2013. From July to August, prices rose by 0.9%. A spokesperson for CoreLogic said that "while prices increased more than 12% on a year-over-year basis, the month-to-month change is more telling of this year's late summer tend." Prices still remain 17.1% below the April 2006 peak.
The Institute for Supply Management (ISM) released its September manufacturing report showing that the ISM Index rose by 56.2 versus the 55.0 that was expected. It was the best level since April of 2011. Within the report it showed that the employment component rose to 55.4, an increase of 2.1 from August and the highest reading for the year. A reading above 50 indicates the manufacturing economy is generally expanding and below 50 indicates that it is generally declining.
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