U.S. Economy Gains Momentum: Grosvenor Research
In its second-quarter North American Research Report, Grosvenor reports that the U.S. economy is gaining momentum.
In its second-quarter North American Research Report, Grosvenor reports that the U.S. economy is gaining momentum. “The economy is benefitting from increased momentum as employment levels rise, companies remain flush with cash and sentiment improves,” says Eileen Marrinan, director of research for San Francisco-based Grosvenor Americas. “It is our view that macroeconomic trends are strong enough to withstand a serious threat to continued growth.”
While oil prices and the housing market have presented challenges, Marrinan says, these factors have already done most of their damage. And while the economy has seen sharp increases in prices for food and energy, Grosvenor expects these increases to be transitory, with inflation trending back down in 2011. Meanwhile, U.S. commercial real estate investment continues to improve with higher transactional activity, lower cap rates and more plentiful financing.
Marrinan notes that employment growth is the most positive recent trend in the economy, with manufacturing and trade being boosted by a competitive dollar, and private nonfarm payrolls having increased monthly over the last year. However, areas such as the construction industry are still suffering.