Local Market Monitor, a National REIA preferred vendor, recently released their National Economic Outlook for February, 2019 where they share their thoughts on developments taking place in the U.S. economy.
National Economic Outlook – February 2019
February 26, 2019
By Ingo Winzer
The government shutdown affected most of the agencies from which we get data for our monthly commentaries, so this month we’re just providing the basics. Next month we’ll have a full range of options available, including a host of full-year data for 2018.In January, total jobs were up 1.9 percent from the previous year, the best performance since 2015 and following an uptick to 1.8 percent last month. Through much of the last couple of years, job growth has bumped around at the 1.6 percent level.
While the increase is encouraging in general, the effect on real estate markets will be minor because many of the ‘extra’ jobs are in the lowest-paid sector of the economy: hotels and restaurants. Either more Americans are taking their vacations within the US or they’re getting more of their food from Starbucks and sandwich shops.
Jobs were up 2.1 percent in manufacturing, 2.6 percent in business services, 2.4 percent in healthcare, 1.5 percent in finance, and almost flat in retail and government. Unemployment rose slightly, to 4 percent.
About the Author: Ingo Winzer is President of Local Market Monitor, and has analyzed real estate markets for more than 20 years. His views on real estate markets are often quoted in the national press and in 2005, he warned that many housing markets were dangerously over-priced. Previously, Ingo was a founder and Executive Vice President of First Research, an industry research company that was acquired by Dun and Bradstreet in March 2007. He is a graduate of MIT and holds an MBA in Finance from Boston University. He resides in Cambridge, Massachusetts.