As we take a closer look at the dynamics of the economy, it seems that the economic climate has done little more than putter along in 2013.
There has been slight improvement, with third quarter 2013 GDP growing at a seasonally –adjusted annual rate of 3.6 percent, the highest rate in more than a year, and unemployment dropping to 7.0 percent in November, its lowest level since mid-2008. In addition, consumers finally pulled out their pocketbooks and retail spending increased 0.7 percent in November to five-month highs. However, business spending was weak in third quarter, with spending concentrated mostly on the build-up of inventories and almost zero spending on equipment. As for government contributions, spending is down but still running at a deficit, and many investors wonder where the economy would be without the added support provided by the Federal Reserve’s $85 billion in monthly purchases of bonds and securities.
Read more...Reflecting Back on 2013 | Commercial Property Executive