The standoff between the Consumer and Businesses explains the weakness of the Economic Recovery. Each side, employers on one, consumers on the other- is waiting for the other to spend more. Will Companies decide they must replace worn out equipment …or decide that they can’t squeeze any more out of their overworked staff? If Businesses start to buy equipment and orders ramp up..the Industrial space vacancy will fall…and if Companies start to hire and add to their staff…..Commercial Leasing activity will increase substantially.
The following is a key Economic Report just published that could support Businesses expanding their Inventories. Also there is an uptick in personal spending and some excellent hiring news….will this change the standoff? Only time will tell…meanwhile here are the new numbers:
Last Tuesday, chain store sales for the week ended March 23rd were reported by the International Council of Shopping Centers (ICSC) to have increased 3.7% on a year-over-year basis, the largest year-over-year increase in about three years.
The increase is occurring partly because of a pickup in growth in personal income, which through February was up 2.0% on a year-over-year basis, the best since September 2008, according to data released Monday.
The recent pickup in chain store sales is validated also by Monday’s data on personal spending for February, which showed an increase of 0.3%, placing the January and February average for real spending 2.5 percentage points above the Q4 average on an annualized basis, an acceleration from the fourth quarter’s 1.6% rate of gain.
1) Non-farm productivity: Best 3-quarter gain in 51 years, indicating a stretched workforce
2) Temporary employment: 5-month gain of 276k workers, or 16.5%, the fastest pace ever