rate of growth, resulting in a slight boost
to the economy in the second quarter.
Consumer spending provided the bright
spot in the quarter’s economic activity.
Personal consumption increased at an
annual rate of 4. 2 percent in the second
quarter, with most of the gain driven
by goods. Spending on durable goods
rose 8. 4 percent, driven by double-digit
increases in consumer spending on
recreational goods and vehicles (up
14. 3 percent). Nondurable goods also
posted solid growth, with an annual
increase of 6.0 percent, as consumers
spent more on food and beverages in
grocery stores. Consumer spending on
services rose 3.0 percent on an annual
basis, with housing, health care, as well
as lodging and restaurants driving expenditures.
Government spending declined at a 0.9
percent annual growth rate. The federal
government continued slashing spend-
ing, with a 0.2 percent decline, driven
by cuts in defense expenditures. State
and local governments also decreased
spending at a 1. 3 percent annual rate,
due to cuts in infrastructure invest-
ments (down 9. 6 percent).
Echoing stronger consumer spending,
payroll employment continued on an
upward trend, with a net increase of
442,000 new positions in the second
quarter. Average weekly earnings of
private employees rose by 2. 2 percent
in the second quarter of this year, compared to one year earlier.
Employment in private service-provid-ing industries provided the main thrust
for new job growth during the quarter,
with 450,000 net new jobs. Education
and health services had the highest
number of net new employees—158,000.
Professional and business services
added 113,000 net new payroll positions, while financial services added
51,000 new positions to payrolls, keeping demand for office space positive.
Employment in leisure and hospitality
advanced 71,000 new positions, mirroring positive demand for the hotel sector.
With demand for industrial properties
rising, transportation and warehous-
ing employment gained 6,100 new
positions, while wholesale trade
employment rose by 5,200 jobs. The un-
employment rate averaged 4. 9 percent
in the second quarter 2016, flat with the
first quarter’s average. The average
duration of unemployment declined
from 30 weeks in the second quarter of
2015 to 27 weeks in the second quarter
of this year.
Consumer confidence, as measured by
The Conference Board, declined to 94.8
in the second quarter of this year, from
96.0 in the first quarter. Separately, the
Consumer sentiment index compiled
by the University of Michigan moved
up slightly in the second quarter of the
year to 92.4, compared with the 91.6
value from the first quarter. Both remain lower on a year-over-year basis.
SIOR Index Results
Counter to the weak economic growth,
commercial real estate markets
COMMERCIAL PROPERTY PRICE INDICES NCREIF Green Street Advisors KEY
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