Economic Uncertainties Are Diminishing

March 20, 2012

The National Association for Business Economics’ latest U.S. economic report reflects “diminishing uncertainty” among the panel of 45 professional economic and business forecasters who contributed to the report.   This is good news for investors in commercial real estate in San Diego.  

“Economists responding to the latest NABE Outlook Survey are seeing strength in a number of economic measures and have subsequently increased their expectations for employment, housing starts, and business spending,” says NABE President Gene Huang. 

GDP – Economists forecast 2.4 percent growth in median real GDP in 2012, with growth accelerating in the second half of the year. The inflation-adjusted forecast reflects their guarded outlook for the U.S. economy. 

Housing – Housing starts are expected to reach 700,000 units this year and 850,000 units in 2013. The economists forecast a 0.9 percent increase in housing prices in 2012 and a 2.0 percent increase in 2013.

Spending – According to the NABE outlook, consumer-spending growth will increase by 2.1 percent in 2012 and 2.3 percent in 2013, which is below the 2.8 percent historic norm. The outlook for business spending is more optimistic. Economists expect business spending to hit 8.1 percent in 2012 before it decreases slightly to 7.3 percent in 2013. 

“Collectively, forecast uncertainty among the economists appears to have diminished slightly over the last several months,” says Huang.  This could be a very advantageous time to pursue San Diego commercial real estate leasing. 

Source: CCIM Newscenter

 

DISCLAIMER: This blog has been curated from an alternate source and is designed for informational purposes to highlight the commercial real estate market. It solely represents the opinion of the specific blogger and does not necessarily represent the opinion of Pacific Coast Commercial.