Economy Watch: More Mixed Messages on the Economy: Jobs, Consumer Confidence
- Apr 18, 2016
For the U.S. economy in 2016, and thus the commercial and residential real estate market, indicators have been mixed. Some hint at the possibility of a slowdown (and a few glum economists see a recession ahead), while others point to a healthier underlying economy. The parade of mixed numbers continued on Friday.
Twenty-one states had unemployment rate decreases from February, 15 states suffered increases, and 14 states and the District of Columbia had no change, the Bureau of Labor Statistics reported: a fairly mixed bag. South Dakota and New Hampshire had the lowest jobless rates in March, 2.5 percent and 2.6 percent respectively, while the rates in both Arkansas (4 percent) and Oregon (4.5 percent) set new lows since 1976, when the bureau began tracking state rates. Alaska had the highest rate, 6.6 percent.
Among the largest states, with the largest real estate markets, Illinois had relatively high unemployment at 6.5 percent. California was close to the national average of 5.5 percent, coming in at 5.4 percent, while New York State enjoyed a 4.8 percent unemployment rate and Florida’s rate was 4.9 percent. Texas had the lowest large-state unemployment in March, coming in at 4.3 percent.
Separately, the University of Michigan reported that U.S. consumers a bit more nervous than before, with its Sentiment Index falling from 91.0 at the end of March to 89.7 in mid-April, which is 8.4 points below the most recent peak in January 2015. Consumers reported a slowdown in expected wage gains, weakening inflation-adjusted income expectations and growing concerns that slowing economic growth would reduce the pace of job creation.