Research Brief

Clients are informed of the latest market trends and supplied with real-time data on buyer demand, pricing and local markets via our industry-leading research blog, which delivers real-time market intelligence. Up-to-the-minute market information is integrated with the expertise of our management team and agents. We are regularly quoted in leading regional and national publications such as The Wall Street Journal, USA Today, The New York Times, Chicago Tribune and Los Angeles Times

More Jobs Power Increased Spending; Off-Price Retailers Continue Aggressive Expansion

October, 2018

Tight job market a key driver of consumption. With unemployment at its lowest level in nearly 50 years, a larger employment base has helped increase... Read More
 

Consumer Confidence Notches Post-Recession High; Another Strong Holiday Season in Reach for Retailers

September, 2018

Soaring confidence elevates consumption. Strong consumer spending continued in August, boosting core retail sales 5.9 percent on an annual basis and... Read More
 

Affordability Concerns Rise as Demand Exceeds Housing Construction

September, 2018

Monthly housing payments surged this year for homebuyers as mortgage rate increases and rising home prices lifted the cost of homeownership. The monthly payment on a... Read More
 
research brief 4.24

Rising Consumption Boosts Grocery Sector; Segment in Transformation to Emerging Models

August, 2018

Grocery stores gather momentum as retail sales record big gain. For the third consecutive month, core retail sales posted strong year-over-year growth, matching the three-month... Read More
 
research brief 4.24

Booming Economy Prompting Hawkish Fed Policy; Global Financial Markets May Complicate Future Action

June 21, 2018

Fed raises benchmark interest rate; additional increases anticipated. The Federal Reserve increased the federal funds rate by 25 basis points, lifting the overnight lending rate to... Read More
 
research brief 4.24

Economy Drives Increased Spending; Housing-Related Consumption Rising

June 21, 2018

Retail sales accelerate as unemployment rate tumbles. Retail spending posted another strong month with help from an incredibly tight labor market. The 3.8 percent unemployed .... Read More 
 
research brief 4.24

Competition for Staff Invigorates Office Space Demand; Labor Shortage Could Emerge in Second Half of Year

June 20, 2018

Labor market enters a new paradigm. For the first time on record, the number of job openings exceeds the number of people out of work and seeking employment. At the end .... Read More 
 
research brief 4.24

Millennials Driving Force Behind Home Sales; Affordable Suburban Locations Gaining Popularity

June 20, 2018

For a fifth consecutive year, millennials led home purchase activity, comprising 36 percent of the buyers in 2017. The oldest millennials are now 37, and as this generation ages and... Read More
 
research brief 4.24

Heightened Consumer Confidence Remains Driver Behind Strong Spending, Improving Outlook for Retail

May 24, 2018

Stout retail sales growth a product of strong economic metrics. The confluence of several factors contributed to another month of steady spending. Core retail sales increased 4 percent... Read More 
 
research brief 4.24

Continued Job Creation Bolsters Household Formations; Supports Space Demand For Commercial Real Estate

May 18, 2018

Year-to-date employment growth signals economic acceleration. Employment additions in the first four months of 2018 outpaced the previous two years over the same time frame, with 799,000 jobs added. Read More 
 
research brief 4.24

Retail Sales Trend Up As Discretionary Income Advances; Retailers Refine Strategies to Sustain Growth

April 24, 2018

Rising take-home pay fosters retail momentum. Increased discretionary income stemming from tax cuts and a tight labor market are starting to materialize. Read More 
 
Housing report 4.2.18

Home Price Appreciation Widens Affordability Gap, Sustains Strong Apartment Housing Demand

April 2, 2018

Robust housing demand spurred by steady employment gains and wage growth ticked up the homeownership rate by 60 basis points to 64.3 percent at the end of 2017. Read More 
 
Federal Reserve RB 3.23.18

Economic Strength Spurs Fed Rate Increase; Potentially Widens Investor Expectation Gap

March 23, 2018

Fed raises benchmark interest rate, plots path for additional increases.The Federal Reserve increased the federal funds rate by 25 basis points, lifting the overnight...
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Robust Gain in Retail Spending Reiterates Positive Commercial Real Estate Outlook

March 19, 2018

Core retail sales growth extends past holiday season. Steady spending across an array of categories led to an advancement in core retail sales...
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Strong Employment Gains Reinforce Outlook For Positive Real Estate Space Demand

March 14, 2018

Steady economic tailwinds push employment growth. The employment market pointed to an economy on firm footing in February...
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Rising Wages Set the Stage for Economic Acceleration, Expanding Commercial Real Estate Demand

February 6, 2018

Labor market at turning point as wage growth hits recovery high. Meaningful wage growth has been a missing ingredient in the expansion for the...
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2018_02_brief

Tax Law Changes Could Usher in New Challenges For Housing Market, Reinforce Renter Demand

February 1, 2018

Existing single-family home sales increased a modest 1 percent over 2017 as limited for-sale inventory kept the market from gaining traction.... 
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Employment Bounces Back From Hurricanes’ Impact; Labor Shortages Temper Employment Growth

November 10, 2017

Job creation rebounded, adding 261,000 positions in October after hurricane-related effects in Texas and Florida caused a significant slowdown in the... 
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Millennial Homeownership Edging Higher, Young Adults Still Favor Apartment Lifestyle

August 15, 2017

After falling to a five-decade low in the second quarter of last year, the homeownership rate is up almost a full percentage point to...
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Job Creation Outpaces Expectations; Invigorates Commercial Real Estate Space Demand

July 13, 2017

Steady hiring begins to unlock pent-up households. Accelerating job creation together with record-high employment openings have boosted...
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Lower 10-Year Treasury Rate Reduces Debt Cost, but Buyer/Seller Perception Gap Still Prevalent

July 13, 2017

Fed move points to economic strength. A broad range of economic drivers including steady hiring, rising wages and retail sales growth have...
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Household Formation, Loosening Lending Criteria Stimulate Housing Demand

July 13, 2017

The current pace of existing single-family home sales is at the highest level since the Great Recession For-sale inventory appears to be....
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Tight Labor Market Restrains Job Creation, Offers Mixed Outlook for Commercial Real Estate

June 9, 2017

Unemployment reaches 16-year low. The labor market tightened in May, pushing the unemployment rate to 4.3 percent, the lowest level since 2001...
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Household Formation, Confident Consumers Powering Retail Sales Growth

April 18, 2017

Retail sales remained elevated in March as core retail sales rose 4.1 percent over the past year. Emerging wage growth, with average hourly earnings up 2.7 percent over the past year, coupled with consumer confidence at the highest level in 16 years form a positive outlook for the year ahead...
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New-Home Sales Building Momentum As Entry-Level Buyers Re-engage in Homebuying

April 11, 2017

Wage growth, rising consumer confidence and a pickup in entry-level buying contributed to a 12.8 percent annual gain in new-home sales in February. Purchases of lower-priced properties drove the overall increase, signaling the gradual return of first-time homebuyers. Demand...
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Fed Rate Increase Offers Mixed Results

March 20, 2017

A positive economic outlook motivated the Federal Reserve to raise its benchmark rate by 25 basis points. The Fed’s confidence has improved significantly over the past 12 months given the tightened labor market and steady retail sales growth. Rising Fed Funds do not necessarily...
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Retail Sales Boosted by Three Significant Trends; Some Retail Components Falling Behind

March 15, 2017

Retail sales remained elevated in February, with core retail sales vaulting 4.4 percent over the past year, driven by three significant trends. Consistent job growth has added 2.4 million workers over the past year, wage growth is averaging 2.3 percent annually and consumer confidence...
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Payroll Growth Drives Property Performance; Some Uncertainty as Investors Await Tax Plan

March 10, 2017

Healthy job creation in February illustrates a labor market riding considerable momentum. Job growth is bolstering commercial property performance improvements at a time when some uncertainty hangs over commercial property sales...
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Homeownership Rate Falls to 12-Year Low; Young Households Favor Apartments

March 6, 2017

Low inventory is restraining sales of existing single-family homes, which rose in January by just 3.7 percent from last year. Despite an uptick in listings, the supply of available homes for sale held firm at a record-low 3.6 months. Healthy demand for homes lifted the median price 7.3 percent year over year...
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President Trump to Reshape Central Bank on Heels of Gov. Tarullo’s Resignation from Federal Reserve Board

February 22, 2017

Gov. Daniel Tarullo recently announced his resignation from the Board of Governors of the Federal Reserve, effective in early April. With two positions already vacant, President Trump now has the opportunity to fill three of the board’s seven seats, making his mark on the central bank. Additionally, the president...
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Confident Consumers Trigger Retail Sales Growth

February 17, 2017

Consumers followed up robust holiday spending with equally impressive activity in January as core retail sales vaulted 4.4 percent over the past year. Consumer confidence remains near the highest levels of the past decade, reflecting heightened expectations for economic conditions and sentiment. This positive outlook...
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Hiring Bounces Back in January, Offers Upbeat Commercial Property Outlook

February 6, 2017

Broad-based and robust hiring during January extends last year’s labor market momentum. Other indicators were also positive last month and show a tight labor market, imposing a potential headwind for employers this year. The shrinking labor pool and potential misalignments of skills required to fill open positions may moderate...
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Single-Family Housing Supply Falls to Record Low, Tight Market Strengthens Apartment Demand

January 31, 2017

Wage growth and rising household formation are generating healthy demand for housing. The for-sale market is stuck in neutral, however, as tight supply, rising mortgage rates and upward pressure on existing home prices have muted growth. Limited for-sale inventory and lifestyle changes favoring renting are keeping ...
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Employment Momentum, Accelerating Wages Support Real Estate Performance Outlook

January 9, 2017

The employment market consistently signaled steady economic growth last year despite numerous unanticipated events that could have upended the expansion. Nationally, 2.2 million jobs were created during 2016, with unemployment dropping to its lowest level since 2007. The economy has generated 75 straight months...
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Brighter Consumer Outlook Spurs Spending Boost

December 23, 2016

The post-election bump on Wall Street has supported a rise in confidence from 87.2 in October to 93.7 for November, the third highest monthly gain since the end of the recession. Rising consumer optimism was evident in November’s 3.7 percent year-over-year growth in core retail sales, which was well above the 2.2 percent yearly average from the previous 12-month period...
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Fed Rate Increase Creates Mixed Signals for Investors

December 16, 2016

The Federal Reserve raised its overnight rate by 25 basis points to a range from 0.50 percent to 0.75 percent. This decision reiterates the positive economic outlook for 2017 that could accelerate monetary policy in the coming year. Rising interest rates will remain a significant factor in the commercial real estate market that could force asset repricing...
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U.S. Labor Market Resoundingly Consistent; November Hiring Maintains Trend of Broad, Steady Growth

December 2, 2016

The pace of hiring in November serves up the latest evidence that U.S. payrolls continue to expand at a steady pace and measures of labor market slack are also tightening. With the U.S. economy on track to add 2.2 million jobs during 2016, the path for the Federal Reserve to raise its benchmark short-term lending rate later this...
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Sustained Pace of Hiring Lowers Key Unemployment Rates; Rising Wages Could Intensify Inflation Pressure

November 4, 2016

The labor market maintained a healthy pace of growth in October and measures of labor market slack tightened. Last month’s hiring and growth in the average hourly wage raise the probability that the Federal Reserve will lift its benchmark lending rate in December in an effort to avert an acceleration in inflation...
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Tight Housing Inventory Restraining Home Sales, But Builders May Shift Emphasis to Entry-Level Market

October 26, 2016

For-sale housing inventory fell to a decade low during August, and limited housing stock along with strong demand for homes are beginning to encourage homebuilders to shift their focus from larger, luxury homes to smaller, entry-level housing. This change could provide some relief to the supply-constrained...
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Hiring Positive but Restrained by Tight Labor Market; Wage Pressure Emerging

October 10, 2016

Hiring in September reaffirmed that job creation is moderating from the elevated levels of the past two years. The downshift to a more tempered pace likely reflects a shortage of qualified workers as unemployment hovers near 5.0 percent. Accelerated wage gains offer some evidence that employers...
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Changes in Traditional Shopping Patterns Redefine Urban Landscape; E-Commerce Boosting Industrial Appeal

September 30, 2016

While household incomes rose notably during 2015, overall retail sales never shifted into the same high gear, possibly suggesting a more prudent stance toward consumption among American consumers. Yet, outlays for non-necessity items such as sporting goods, hobby stores and big-ticket items...
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First Deals Under New CMBS Rules Clear Hurdles, Lending Spreads Ease

September 20, 2016

Commercial mortgage-backed security (CMBS) financing slowed dramatically in the first half of 2016 as volatility roiled the debt markets. In addition, new rules governing CMBS issuance that take effect at the end of this year also created uncertainty in the marketplace. However, the first CMBS offerings...
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Payroll Sets Moderate Pace in August Likely to Restrain Fed Rate Increase

September 2, 2016

The U.S. labor market produced a “Goldilocks” moment in August: Hiring was neither too hot nor too cold. Modest payroll growth last month reaffirms the sound state of the U.S. labor market and raises questions regarding whether the Federal Reserve needs to raise its benchmark interest...
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Elevated Home Sales Push Pricing, but Falling Homeownership Rate Boosts Rental Demand

August 26, 2016

Existing single-family home prices marked moderate gains in July, moving back into alignment with the pre-recession peak. Though home prices ticked up, existing home sales dipped for the first time since November 2015 as limited available inventory weighed on further progression...
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Shopping Centers Repurpose for Digital Age; Evolving Landscape Spawns Development Slowdown

August 18, 2016

A sizable gain in e-commerce sales last month further illustrates the emergence of Internet-based commerce as a substantial force that is prompting a response from shopping center owners and developers. The continuing migration of sales online and shrinking footprints of many retailers are encouraging...
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Economic Momentum Accelerates Behind Broad-based Hiring in July

August 8, 2016

Exceptional payroll growth in July and upward revisions to job gains in the preceding two months underline the persistent strength of the U.S. economy, which is now in its seventh year of expansion. Secondary indicators of labor market activity, including unemployment claims, the unemployment rate...
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Brick-and-Mortar Retail Incorporates More Services with Products as E-Commerce Proliferates

July 22, 2016

The rise of Internet shopping as a destination hub is reshaping the economy, steering spending toward new sellers and platforms as product selection, delivery times and convenience improve. The ascent of this trend is spawning the creation of Internet-based businesses and pressuring traditional retailers to adapt as mobile...
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Employers Display Renewed Vigor in June; Substantial Job Gain Ends First Half on Positive Note

July 11, 2016

The substantial jump in hiring during June to the highest monthly level this year suppresses talk of a sharp slowdown in job creation and strongly reaffirms that the U.S. economy remains on a growth track. Although last month’s survey occurred before the unexpected outcome of the Brexit vote, secondary employment...
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Single-Family Home Sales and Building Advance; Hurdles to Faster Growth Persist

July 11, 2016

A modest advance in sales activity during the month of May put additional strain on for-sale inventory as the single-family housing market seems to remain caught in a loop that continues to prevent many prospective homebuyers from making a purchase. Sales of existing single-family homes are rising, but the low level of homes...
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Baby Boomers, Millennials Shaping Retail Landscape, Driving Spending Patterns and New Distribution Channels

June 29, 2016

Positive demographic trends continue to generate demand for an array of goods sold through physical and online retail destinations, supporting an increase in retail sales over the past year. While baby boomers and millennials spend money in different ways, the combined two groups account for more than...
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British Surprise with EU Exit Vote — Uncertainty Poses Headwind; Falling Interest Rates a Silver Lining for Commercial Real Estate

June 28, 2016

Contrary to polls and predictions, citizens of the United Kingdom voted to leave the European Union, creating uncertainty that induced a sharp decline in global equity markets. The British currency fell dramatically, boosting the value of the U.S. dollar, and the quick re-deployment of capital to safer assets pushed...
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Gains in Home Sales Posted During April As Low Interest Rates, Positive Economic Trends Align

June 14, 2016

The increase in sales of previously owned homes and new single-family residences in April illustrates growing demand for owner-occupied housing and the improving ability of prospective homebuyers to save for downpayments and handle monthly mortgage obligations. Interest rates on residential mortgages remain near...
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Steady Economic Performance Slightly Lifts U.S. Payrolls; Soft Hiring Could Prompt Reconsideration of Fed Move

June 7, 2016

Declining unemployment claims and job openings near an all-time high point to an expanding labor market, not one that is losing momentum as suggested by weaker-than-anticipated job creation in May. The slight gain in payrolls, however, offers the Federal Reserve an opening to withhold a rate hike this month and delay...
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Employers Maintained Hiring Trend in April; Underemployment Rate Tightening

May 10, 2016

Solid hiring across multiple employment sectors in April did not produce a large gain in U.S. payrolls, but the increase nonetheless reaffirms that the labor market remains in sound condition. Other labor market trends, including a low level of initial unemployment claims and an elevated number of job openings, indicate...
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Single-Family Home Sales Maintain Momentum; New Homebuilders Strive to Keep Pace

May 5, 2016

Housing demand remains elevated as low mortgage rates have helped keep the cost of ownership in check despite steady appreciation. The solid pace of hiring over the last six years and modest but consistent wage growth have helped prospective homeowners repair their balance sheets and re-engage...
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Retail Sales Maintain Steady Pace as Economy Posts Moderate Growth; Online Sales Push Retailers to Adopt New Strategies

April 16, 2016

U.S. consumers continued to play an active role in creating economic growth in the first quarter, lifting core retail sales, which omits gasoline and automobiles, at a steady but moderate pace. With manufacturing, exports and business investment softening in response to a strong U.S. dollar and with reduced activity...
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March Job Creation Latest Sign of Labor Market Health; Growth in First Quarter Tops Last Year’s Pace

April 8, 2016

A solid burst of hiring last month culminated a strong first quarter for the U.S. labor market. Brushing off stock market volatility early in the year and softness in overseas economies, employers added 628,000 workers to payrolls in the first quarter, exceeding the total recorded in the first three months of 2015. Other labor market...
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Single-Family Home Sales Curbed by February Chill, Limited Inventory; Trends Boost Apartment Demand

April 5, 2016

A limited for-sale inventory and inclement weather combined to suppress sales of existing single-family homes last month. While job growth continues to generate new housing demand, the limited available listings are precluding many prospective homebuyers from making purchases. The dip in February sales...
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Moderate Retail Sales Reiterate Consumer Caution; Underlying Drivers Remain Positive

March 24, 2016

February’s retail sales results reflected the significant Wall Street and international economic turbulence that started off the year. The weaker than anticipated retail sales figure revealed generally greater caution among consumers for the month, but this modest pullback could ease in the coming months. Questions surrounding...
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Resilient U.S. Job Market Picked Up Pace in February; Healthy Hiring Affirms Economy’s Growth Track

March 9, 2016

Employers hired at a brisk pace in February, once again serving notice that the U.S. labor market continues to shrug off lingering global economic uncertainty and softness in oil and gas industries. Jobs were created in multiple service sectors of the economy and at government agencies during...
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U.S. Consumers Open Wallets in January; Retail Sales Rise, Strengthening Optimism in U.S. Economy

February 22, 2016

Shaking off inclement weather in many parts of the country and the post-holiday doldrums, consumers headed to stores in vast numbers and frequently logged onto online retailers’ websites to drive up retail sales in January. Last month’s gain, plus an upward revision to the initially reported drop in...
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January Hiring Short of Expectations But Gains Align to Support Commercial Real Estate

February 19, 2016

The pace of hiring slackened in January following three months of outsize growth. New additions were made in a broad range of employment sectors and reduced the unemployment rate to its lowest level since early 2008. The performance of the job market, together with the new reading indicating the number...
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Oil Price Suppressed as Supply Glut Overloads Market; Poses Risks and Benefits for U.S. Economy

February 2, 2016

A substantial increase in supply ignited a steep decline in the price of crude oil over the past year. U.S. crude inventory has increased more than 20 percent since year-end 2014 and OPEC members continue to pump at elevated levels in an attempt to weaken U.S. producers. The supply glut and downward price pressure...
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Online Driving Retail Sales Growth

December Retail Sales Dip, Though Strong Consumer Drives Gain for 2015

January 18, 2016

Increases in several retail categories were insufficient to offset weather-related factors and avert a minor drop in retail sales in December. For the entire year, however, retail sales increased, illustrating the continuing resilience of the U.S. consumer and providing the Federal Reserve confidence to normalize...
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Labor Tightens 

Broad-Based December Hiring Solidifies 2015 Results; Tightening Labor Market Keeps Fed's Options Open

January 11, 2016

U.S. employers pushed ahead with hiring plans in December to top off a strong year of job creation. The vigor of the U.S. labor market evident throughout 2015 will enable the Federal Reserve to place greater weight on inflation trends in guiding its monetary policy decisions this year. Nonetheless, a chaotic opening...
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Cypress Village 

U.S. Consumers Get in the Holiday Spirit; Retail Sales Rise, Fueled by Gains in Discretionary Categories

December 18, 2015

Retail sales expanded moderately in November, highlighting the strength of the U.S. consumer. Price-driven declines in gas station spending were offset by gains in online sales, food services and other discretionary spending categories, helping to allay any fears about a slowdown in the economy. The Federal Reserve’s decision to gradually raise...
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Cypress Village 

Fed Makes Long-Awaited Move; End of an Era, Signal of Confidence

December 17, 2015

The U.S. economy passed a major psychological threshold as the Federal Reserve closed the door on the extraordinary measures put in place to combat the financial crisis. With the quarter-point increase of its overnight lending rate, the Fed signaled that the economy has finally returned to normal operating levels. Though some sectors...
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